145k views
0 votes
Which one of the following is not one of the major reasons for a manager to understand cost behavior? A. Useful for evaluating divisional performance B. Useful for implementing flexible budgeting C. Useful for writing a report to shareholders D. Useful for conducting break-even and contribution margin analysis

2 Answers

0 votes

Answer:

C. Useful for writing a report to the shareholders

Step-by-step explanation:

Based on the scenario being explained in the question, it safe to say that cost behavior is not among the major reasons" useful for writing a report to the shareholders.

Cost behavior can be define as an indicator that shows how a cost will change totally when there is a change in some activity. We have three types of cost behavior that are usually discussed in managerial accounting and cost accounting these are;

1.Variable costs

2. Fixed costs

3. Mixed or Semivariablecosts.

All the other option shows a major reason why a manager understands cost behavior except useful for writing a report to the shareholders which is option C.

User Clarissa
by
8.4k points
2 votes

Answer:

The answer is option C) Useful for writing a report to shareholders is NOT one of the major reasons for a manager to understand cost behavior.

Step-by-step explanation:

Cost behavior is observed by the manager to evaluate the changes in cost due to changes in level of output within the organization.

Analyzing cost behavior

  • Useful for evaluating divisional performance
  • Useful for implementing flexible budgeting
  • Useful for conducting break-even and contribution margin analysis

It important for managerial decision making purpose and helps managers would be able to reduce total cost incurred on activities.

User Xyrus
by
8.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.