Managers Need to Know Product Costs to Make Ongoing Decisions

question 35

True/False

Managers need to know product costs to make ongoing decisions such as which products to emphasize or deemphasize and the pricing of products.

---

Definitions:

Current Performance

An assessment or measurement of ongoing activities or results within a given period, indicating the present state of an organization or individual's achievements.

Monopolistically Competitive

Refers to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Long-run Equilibrium

A condition in the market where all firms in an industry are making zero economic profit, and there is an efficient allocation of resources.

Marginal Revenue

The additional income generated from selling one more unit of a product or service.