Which of the following statements about cost management is true?
A) It requires that managers actively strive to increase revenues.
B) It only focuses on inventoriable costs.
C) It is not affected by the organization's customers.
D) It only applies to period costs.
E) It requires efficient management of the use of the cost drivers in the value-added activities.

Question

Quizplus · Accepted Answer

Cost management involves controlling and reducing costs in order to maximize profits or achieve organizational goals. This requires efficient management of the use of cost drivers in value-added activities. It is not limited to inventoriable or period costs and should consider the impact of customer demands and revenue generation. Therefore, option E is the correct statement.

Which of the Following Statements About Cost Management Is True