Managers and Management Accountants Argue That in the Long Run,customers

question 43

Multiple Choice

Managers and management accountants argue that in the long run,customers and products must eventually be profitable on a ________ basis.

• A)product cost
• B)full-cost
• C)variable cost
• D)fixed cost

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Definitions:

Flexible Budget

A flexible budget adjusts based on changes in the volume of activity or other relevant factors. It allows for a more accurate comparison of budgeted versus actual costs under varying levels of activity.

Occupancy Expenses

Occupancy expenses are costs associated with renting or maintaining premises for business operations, such as rent, utilities, and property taxes.

Client-Visits

Meetings or interactions with clients, often used to build relationships, assess needs, or deliver services.

Activity Variance

The difference between budgeted and actual activity levels, often analyzed in cost accounting and performance management.