Question

I. Managers depend on relevantand reliable information about product unit costs to manage theirorganizations.

A. Unit cost knowledge is used for__________________:

1. To help set reasonable_______________.

2. To help __________________ thecost of products or services.

B. Timely cost knowledge is used inday-to-day ____________________:

1. To manage activity________________.

2. To ensuring__________________.

3. To negotiate a ________________price.

C. Actual results and targets are usedwhen _______________________:

1. To watch for changes in___________________.

2. To watch for changes in___________________.

D. Managers use unit costs when________________ to internal and external users:

1. Inventory balances on the_____________________ .

2. Cost of goods sold/sales on the____________________.

E. Job order costing supports the____________________ process as summarized in Exhibit 6.