Which of the Following Is Not a Reason Why Managers

question 27

Multiple Choice

Which of the following is not a reason why managers see an accelerated need for refinement?

• A)The growing demand of products and competition in product markets.
• B)The increases in direct costs.
• C)Decreases in indirect costs.
• D)Increases in product diversity with both international and domestic banking facilities.
• E)Use of broad averages fails to capture differences in demand and leads to distorted and inaccurate cost information.

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Definitions:

Total Purchased Cost

The complete expense incurred to acquire goods or services, including the purchase price and any additional charges.

Unit Cost

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Employer Contribution

The amount of money that an employer adds to an employee's benefits, such as retirement plans or health insurance.

Employee Contribution

The portion of income, investment, or expense that is provided by an employee, often related to benefits or retirement plans.