COST ACCOUNTING
INFORMATION FOR DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Will the customer meet a specific designated gross margin percentage?
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Will the customer be willing to pay a higher price to insure RCG’s profitability?
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Will enough customers be found to replace any customers dropped for lack of profitability?
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Will expected total corporate office costs decrease if decision is made to drop the customer?
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Detailed explanation-1: -Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.
Detailed explanation-2: -Cost accounting aims to report, analyze, and lead to the improvement of internal cost controls and efficiency. In short, cost accounting is a system of operational analysis for management.
Detailed explanation-3: -Cost accounting is a business practice in which you record, examine, summarize, and understand the money that a business spent on a process, product, or service. It can help an organization control costs and engage in strategic planning to improve cost efficiency.
Detailed explanation-4: -Cost Accounting is a business practice in which we record, examine, summarize, and study the company’s cost spent on any process, service, product or anything else in the organization. This helps the organization in cost controlling and making strategic planning and decision on improving cost efficiency.