In Should-Cost Modeling, _____ Refers to the Integrity and Transparency

question 10

Multiple Choice

In should-cost modeling, _____ refers to the integrity and transparency of the cost model created.

• A)direct cost
• B)value stream maps
• C)make-or-buy analysis
• D)fixed cost
• E)auditability

---

Definitions:

Maximize Profits

The process by which a company seeks to achieve the highest possible financial gain from its operations and sales.

Break-even

The point at which total costs and total revenues are equal, meaning that there is no net loss or gain from the business activities.

Marginal Cost

The expense associated with the production of an extra single unit of a good or service.

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, homogeneous products, and perfect information among consumers and producers.