Knowing How Costs Behave Is Useful to Management for All

question 159

Multiple Choice

Knowing how costs behave is useful to management for all the following reasons except for

• A) predicting customer demand.
• B) predicting profits as sales and production volumes change.
• C) estimating costs.
• D) changing an existing product production.

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Definitions:

U.S. Clothing Manufacturer

A company based in the United States that produces clothing and apparel items for distribution and sale.

Specifications

Specifications are detailed requirements for the design, materials, and performance standards of a project or product.

Protective Tariff

A levy placed on foreign goods to safeguard local industries by increasing the cost of imports, hence reducing their attractiveness compared to domestic products.

Imported Wine

Wine that is brought into a country from another country, typically for retail and consumption within the importing country.