The best use by managers of cost behavior patterns is to
A)estimate how activities affect costs and forecast costs.
B)estimate how activities affect subordinate behavior.
C)control subordinate behavior.
D)reward and punish subordinates.

Question

Quizplus · Accepted Answer

Managers can use cost behavior patterns to estimate how different activities affect costs and forecast costs accurately. This information can help managers make better decisions about pricing, cost control, and resource allocation. Cost behavior patterns can also be used to identify areas of inefficiency and wastage, so that corrective action can be taken. However, cost behavior patterns should not be used to control, reward or punish subordinates, as this may lead to a demoralized workforce and negatively impact organizational performance.

The Best Use by Managers of Cost Behavior Patterns Is