Managers need quality cost information for which decisions?

Question

Quizplus · Accepted Answer

Managers need quality cost information for all these decisions. Strategic pricing decisions depend on understanding the cost of production, while cost-volume-profit analysis requires knowledge of both fixed and variable costs. Cost-benefit analysis is the process of comparing the costs and benefits of a particular decision, and understanding the costs associated with quality improvement programs is critical to determining their overall effectiveness. Consequently, having quality cost information is essential for all three decisions.

Managers Need Quality Cost Information for Which Decisions