Chapter 2 An Introduction to Cost Terms and Purposes Objective 2.1 1) An actual cost is . A) is the cost incurred B) is a predicted or forecasted cost C) is anything for which a cost measurement is desired D) is the collection of cost data in some organized way by means of an accounting system Answer: A Diff: 1 Objective: 1 AACSB: Analytical thinking 2) Comparing budgeted costs to actual costs helps managers to improve . A) coordination B) control C) implementation D) planning Answer: B Diff: 1 Objective: 1 AACSB: Analytical thinking 3) Budgeted costs are . A) the costs incurred this year B) the costs incurred last year C) planned or forecasted costs