II. Managers use ______________ about cost behavior in almost every decision the
ID: 2418171 • Letter: I
Question
II. Managers use ______________ about cost behavior in almost every decision they make.
A. When ____________, managers use cost behavior to determine how many units of products or services must be sold to generate a targeted amount of profit and how changes in planned activities will affect operating income.
B. When ____________ their duties, managers use cost behavior to determine the impact of their decisions on operating income.
C. When _____________ and ______________ on performance, managers analyze how changes in costs and sales affect profitability.
Explanation / Answer
Managers use assumptions abouabout cost behavior in almost every decision they make. A. When planning, managers use cost behavior to determine how many units of products or services must be sold to generate a targeted amount of profit and how changes in planned activities will affect operating income. B. When performing their duties, managers use cost behavior to determine the impact of their decisions on operating income. C. When evaluating and reporting on performance, managers analyze how changes in costs and sales affect profitability.