Which of the following managerial objectives is served by traditional product costs?
A)Product mix decisions
B)External financial reporting
C)Strategic design decisions
D)Tactical profitability analysis

Question

Quizplus · Accepted Answer

Traditional product costs are typically used for external financial reporting purposes, as they provide information on the cost of goods sold and the inventory value on the balance sheet. This is an important aspect of financial reporting, as investors and other external parties rely on accurate financial statements to make decisions about investing or lending to a company. While product costs can also be used for other managerial objectives, such as tactical profitability analysis, it is primarily used for external reporting purposes. Product mix decisions and strategic design decisions, on the other hand, would typically involve more detailed and specific cost information that goes beyond traditional product costs.

Which of the Following Managerial Objectives Is Served by Traditional