Asked by Megan kibby on Jun 10, 2024

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Which of the following costs should be considered when managers are making short term profitability analysis decisions?

A) Marketing costs
B) Design costs
C) Research and development costs
D) None of the above

Short Term Profitability

The ability of a company to generate profit over a brief period, often evaluated on a quarterly or annual basis.

Marketing Costs

Expenses related to promoting and selling products or services, including advertising, product promotion, and sales force expenses.

Design Costs

The expenses associated with the conceptualization and development phases of product creation, including research, design, and prototyping.

  • Recognize the importance of product costs for inventory valuation, making managerial decisions, and cost management.
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Lizbeth Alondra GomezJun 11, 2024
Final Answer :
A
Explanation :
Short term profitability analysis decisions typically involve the consideration of costs that impact the immediate bottom line, such as marketing costs. Design costs and research and development costs are typically longer-term investments that may not directly impact short-term profitability. Therefore, option A is the best choice.