Which of the following is an example of a strategic management decision that uses cost information?
A) determination of Cost of Goods Sold for the income statement
B) identification of value-chain function to outsource
C) evaluation of operational cost control program
D) assessment of process improvement efforts in quality control

Question

Quizplus · Accepted Answer

Identifying a value-chain function to outsource involves analyzing the costs associated with that function and comparing them to the potential cost savings from outsourcing. This is a strategic management decision that uses cost information. The determination of Cost of Goods Sold for the income statement is an accounting decision, evaluating operational cost control program is an operational decision, and assessment of process improvement efforts in quality control is a quality control decision.

Which of the Following Is an Example of a Strategic