Which of the Following Are Methods for a Company to Meet

question 176

Multiple Choice

Which of the following are methods for a company to meet target total cost and profit goals if the current cost of the product is higher than the target cost?

• A)Accept a lower profit
• B)Cut fixed costs
• C)Cut variable costs
• D)Any of the above

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Definitions:

Planning and Control

Planning and Control encompass the processes used by management to set goals, implement strategies, and ensure the organization's resources are used effectively and efficiently to achieve them.

Transfer Price

The price at which goods or services are sold between divisions within the same company.

External Market

The environment outside a business in which it operates, dealing with the supply, demand, and pricing of goods and services.

Variable Manufacturing Cost

Costs that vary directly with the level of production output, such as raw materials and direct labor.