A Thorough Knowledge of Cost Behavior Helps Managers to _____

question 122

Multiple Choice

A thorough knowledge of cost behavior helps managers to _____.

• A)plan costs
• B)obtain feedback
• C)decide on the efficient use of resources
• D)all of these answers are correct

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Definitions:

Down Payment

An initial payment made when something is bought on credit.

Successful-efforts Method

An accounting method used in the oil and gas industry where costs are capitalized only if successful discoveries are made.

Full-cost Method

Accounting practice where all direct and indirect fixed and variable costs are allocated to inventory until the products are sold.

IFRS

A set of accounting standards named International Financial Reporting Standards, developed globally by the International Accounting Standards Board (IASB).