Which of the Following Statements About Cost Management Is TRUE

question 55

Multiple Choice

Which of the following statements about cost management is TRUE?

• A)It requires that managers actively strive to increase revenues.
• B)It only focuses on inventoriable costs.
• C)It is not affected by the organization's customers.
• D)It only applies to period costs.
• E)It requires efficient management of the use of the cost drivers in the value-added activities.

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Definitions:

World Price

The worldwide market value of a product or service, established by the universal demand and supply.

Trade Restrictions

Measures imposed by governments to control the flow of goods and services across borders, including tariffs, quotas, and import bans, often with the aim of protecting domestic industries.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a specific price over a defined period of time.

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive, due to higher market prices.