Which of the Following Is a Guideline Used by Management

question 191

Multiple Choice

Which of the following is a guideline used by management accountants to assist in strategic and operational decision making?

• A) employing a cost-benefit approach
• B) employing a supply chain approach
• C) employing a six sigma approach
• D) employing a regression approach

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Definitions:

Financial Advantage

The position of having superior financial resources or capabilities compared to others, providing a competitive edge.

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

Annual Financial Advantage

Describes the financial benefit or gain achieved by an entity over the course of a fiscal year, encompassing all revenue streams and savings.

Variable Costs

Costs that vary directly with the level of business activity.