Understanding how costs behave is useful to management for all of the following reasons except
A)predicting customer demand
B)predicting profits as sales and production volumes change
C)estimating costs
D)changing an existing product production

Question

Quizplus · Accepted Answer

Understanding how costs behave is crucial for predicting profits, estimating costs, and making decisions about production changes, but it does not directly help in predicting customer demand. Customer demand is influenced by a variety of factors such as market trends, consumer preferences, and competitive actions, which are not directly related to cost behavior analysis.

Understanding How Costs Behave Is Useful to Management for All