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Management · Q345

Management Accounting

Graduate and Post Graduate · Management · question 345

Q345

Costs that are planned in future and has not been incurred are known as

A.
designed-in costs
Answer
B.
locked-in costs
C.
value added cost
D.
both a and b

Answer: Option A

Solution

Answer: Option A
Solution:
Costs that are planned in future and has not been incurred are known as designed-in costs. Design to cost is the process of reducing cost in the requirements and design phase of a project.