Responding to pressures for cost reductions requires that a company try to minimize its ____________.
A) overhead costs.
B) tangible asset costs.
C) unit costs.
D) intangible asset costs.
E) none of the above.

Question

Quizplus · Accepted Answer

Cost reduction pressures require a company to minimize its unit costs, which is the cost incurred to produce one unit of output. This is often achieved by reducing overhead costs, tangible asset costs, and intangible asset costs. However, reducing unit costs is the most effective way to achieve cost reduction goals.

Responding to Pressures for Cost Reductions Requires That a Company