Cost information for services or products produced by a company is needed for:
A) determining the company's selling prices.
B) external reporting.
C) managerial decisions.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Cost information is needed for all the listed purposes. Determining selling prices requires knowledge of the production costs to determine a profitable margin. External reporting requires accurate cost information for financial statements. Managerial decisions such as budgeting, pricing strategies, and production decisions are also based on cost information.

Cost Information for Services or Products Produced by a Company