A Thorough Knowledge of Cost Behavior Helps Managers To

question 72

Multiple Choice

A thorough knowledge of cost behavior helps managers to:

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

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Definitions:

Functional Lines

The demarcation of responsibilities and tasks in an organization based on specific functions such as marketing, finance, or human resources.

Functional Expertise

Specialized knowledge or proficiency in a particular area or discipline within a professional context.

Economies of Scale

The cost advantage that arises with increased output of a product, leading to a lower cost per unit.

M-Form Organization

A structure for corporations characterized by decentralized divisions, where each operates as an individual profit center, allowing for specialization and efficiencies across the organization.