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The process of setting standards and comparing actual performance with standards with a view to control the cost is ________.
Answer & Solution
Correct Answer:
Option
B
The process of setting standards and comparing actual performance with standards with a view to control the cost is cost control. Cost control is the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process. A business owner compares actual results with the budgeted expectations and if actual costs are higher than planned, management takes action.
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