Minimizing period-by-period increases in unit variable costs and total fixed costs defines efforts of cost
A)control.
B)avoidance.
C)containment.
D)reduction.

Question

Quizplus · Accepted Answer

Cost containment refers to the efforts made by management to minimize any period-by-period increases in unit variable costs and total fixed costs. It involves identifying cost increases and finding ways to control or reduce them to maintain profitability. Cost control refers to the activities undertaken by management to ensure that costs remain within the budgeted limits, whereas cost avoidance involves finding ways to eliminate unnecessary costs. Cost reduction refers to efforts made to lower the costs by reducing expenses or increasing efficiency.

Minimizing Period-By-Period Increases in Unit Variable Costs and Total Fixed