Q334
In accounting, cost incurred in past or in historical financial statements is classified as
A.
actual cost
AnswerB.
budgeted cost
C.
past cost
D.
incurred cost
Answer: Option A
Solution
Answer: Option A
Solution:
In accounting, cost incurred in past or in historical financial statements is classified as actual cost. Actual cost is the actual expenditure made to acquire an asset, which includes the supplier-invoiced expense, plus the costs to deliver, set up, and test the asset.