The make-up of their cost base is an area of focus for managers to develop a good understanding of an organization's cost base.

Question

Quizplus · Accepted Answer

This statement is true. Managers need to understand the different components of their organization's cost base in order to effectively analyze and manage costs. This includes understanding the types of expenses, such as fixed and variable costs, and identifying areas where cost reduction or optimization may be possible.

The Make-Up of Their Cost Base Is an Area of Focus