Asked by Ana Bel Montes on May 05, 2024

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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

Customer Demand

The level of interest and need for products or services by consumers in the market at a given time.

Predicting Profits

The process of estimating the future financial profits of a business based on current data, trends, and analysis.

Production Volumes

The quantity of goods a company produces within a given period, often used to measure operational efficiency.

  • Understand the concept of fixed, variable, and mixed costs.
  • Determine the impacts of cost behavior on product pricing and profitability.
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JL
jaime lopezMay 07, 2024
Final Answer :
A
Explanation :
Understanding how costs behave helps management predict profits and estimate costs, as well as make informed decisions about adjusting production volume or changing products. However, it does not directly relate to predicting customer demand, which is more closely tied to market research and analysis.