BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Choose the most appropriate answer for the question.Why management of a company need to know the cost of a product?
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To make the products famous
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To determine the selling price
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To determine the GST
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To promote the product in social media
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Explanation:
Detailed explanation-1: -So, knowing product cost is crucial to their success because they have to manage their costs to be profitable. So many sales decisions have to be made based on COST. Occasionally you are faced with a sales opportunity for which only incremental costs and revenues for that one transaction are relevant.
Detailed explanation-2: -Unit cost is a crucial cost measure in the operational analysis of a company. Identifying and analyzing a company’s unit costs is a quick way to check if a company is producing a product efficiently.
There is 1 question to complete.