Which of the following statements about costs is FALSE?
A)An organization may have cost drivers across various activities of its value chain.
B)It is important to identify the appropriate cost drivers.
C)One of the main goals of management accounting is helping managers control costs.
D)Managers can control costs without understanding how activities of an organization affects its costs.

Question

Quizplus · Accepted Answer

Managers cannot fully control costs without understanding how activities of an organization affect its costs. Identifying cost drivers and understanding the various activities of an organization's value chain are important factors in controlling costs. Thus, statement D is false.

Which of the Following Statements About Costs Is FALSE