Question

Total cost analysis divides costs into direct​ (costs that are tied to the level of operations or supply chain​ activities) and indirect​ (costs that are not tied to the level of operations or supply chain​ activity).A. trueB. false

Answer 1

The correct option is A. This is a TRUE statement.

Step-by-step explanation:

A cost analysis means evaluating the cost of implementing the program without regard to the ultimate outcome. Cost analysis helps in determining whether the project will be suitable for us before pursuing it.

The profit margin can be obtained by the ratio of earnings to sales for specific time period. Many organizations or firms use a cost analysis tool to predict the value of the project. Cost analysis helps in making better decisions for an organization.