In a highly regulated,monopolistic industry,such as the electrical utility or TV cable,a cost management system is
A)of limited need because costs are typically passed along to customers via the rate structure.
B)essential because of the need to provide the highest degree of cost efficiency possible for customers.
C)critical to the needs of empowered employees making decisions at various levels of the organizational hierarchy.
D)of no use because there is no attempt by management to control costs.

Question

Quizplus · Accepted Answer

In a highly regulated, monopolistic industry, where costs are typically passed along to customers via the rate structure, the need for a cost management system may be limited. Customers typically have limited options to choose from, and the regulatory authorities oversee pricing and cost control measures. Therefore, the organization may not require a cost management system to the same degree as a competitive industry.

In a Highly Regulated,monopolistic Industry,such as the Electrical Utility or TV