Which of the Following Is a Cost Control and Cost

question 17

Multiple Choice

Which of the following is a cost control and cost reduction technique that helps managers control operations by focusing primarily on material costs?

• A) Materials planning
• B) Decision-tree analysis
• C) Break-even analysis
• D) Value analysis
• E) Process control

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Collection Period

The average number of days it takes a company to collect payments from its credit sales, reflecting the efficiency of its credit and collection policies.

Sales Estimate

An approximation of the number or value of sales over a specific period, often used for planning and budgeting purposes.

Cash Collections

The process of gathering all received cash and cash equivalents during a specified period.