One of the Purposes of Studying Cost Drivers Is To

question 66

Multiple Choice

One of the purposes of studying cost drivers is to:

• A)Understand how they can be reduced
• B)Improve strategic goals achievement
• C)Generate commitment and dialogue within a firm
• D)Keep management informed of progress.

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Definitions:

Source Of Cash

Refers to the origins of funds for a business or individual, such as operations, financing activities, or investment returns.

Asset Account

This refers to any account on a company's balance sheet that represents a tangible or intangible resource owned by the company that has economic value.

Liquid Accounts

Refers to financial accounts which hold assets that can be readily converted into cash, often with little to no loss in value, such as savings accounts or money market accounts.

Profitability Ratios

Financial metrics used to evaluate a company's ability to generate profit relative to its revenue, assets, equity, or other financial metrics.