Determining how the organization is to compete is a reason for managers to understand the configuration of the cost base of the organization.

Question

Quizplus · Accepted Answer

Understanding the cost base of the organization is essential for managers to determine the most effective strategy for competing in the market. A clear understanding of the cost structure helps to identify cost advantages or disadvantages, which in turn influences decisions about pricing, product design, and other competitive factors.

Determining How the Organization Is to Compete Is a Reason