Product cost depends on the reason for knowing it
Not what you're looking for?
In a meeting among company executives and cost accountants, the CEO asked for the product costs for the company's newest product line. The cost accountant replied, "Product cost depends on the reason for knowing it." Do you agree? Explain.
Purchase this Solution
Solution Summary
The 204 word, cited solution cites 8 reasons why a CEO might ask the question followed by several paragraphs of discussion about the view from the cost accountant's perspective.
Solution Preview
There could be a number of reasons why the CEO is asking about product costs. Those reasons could center on pricing issues, marketing plans, cost of holding inventory, distribution strategies, marketing mix changes, financing, divisional profit projections, or presentations to stakeholders.
The response from the cost accountant is all ...
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Operations Management
This quiz tests a student's knowledge about Operations Management