Competition Places an Increased Emphasis on Cost Reductions

question 92

Multiple Choice

Competition places an increased emphasis on cost reductions.For an organization to reduce costs it must focus on

• A)maximizing the cost allocation system.
• B)reporting non-value added costs separately from value-added costs.
• C)efficiently managing the use of the cost drivers in those value-added activities.
• D)the cost allocation process.
• E)reducing the number of cost drivers.

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Definitions:

Damage or Destruction

The physical harm or ruin caused to property, environments, or items, which can impact their value, function, or usability.

Non-Merchant

An individual or entity who does not regularly deal in goods of the kind sold or who does not hold themselves out as having special knowledge or skills relevant to the goods involved in the transaction.

Tender of Delivery

The process by which a seller makes goods available to a buyer in fulfillment of a sales contract and notifies the buyer that the goods are ready for receipt.

Destroyed Through Fire

Refers to property or goods that have been damaged or annihilated as a result of fire.