When cost driver analysis is used,organizational profit or loss can be determined by subtracting
A)organizational costs from total margin provided by products.
B)organizational costs from total product revenue.
C)total product costs from total product revenue.
D)total unit,batch,product/process,and organizational level costs incurred for a period from total product revenue.

Question

Quizplus · Accepted Answer

Organizational profit or loss is determined by subtracting organizational costs from the total margin provided by products, as this margin accounts for the costs directly associated with producing the products.

When Cost Driver Analysis Is Used,organizational Profit or Loss Can