Question

Understanding how costs behave is useful to management for all the following reasons except a. predicting customer demand b. predicting profits as sales and production volumes change c. estimating costs d. changing an existing product production

Answer 1

Answer:

The correct answer is A

Explanation:

Study of the cost behavior provides the useful information for determining the costs.Customer demand could not be predicted by paying the attention to how the costs varies or change when the activity changes. However, the costs could be estimated or determined and changes could be made to the production which is existing in order to maximise the profit for the business.