The low level managers in organizations are to make decisions about _____________?
Correct answer: B. operating income maximization
- A. net income irrelevancy
- B. operating income maximization
- C. operating income minimization
- D. operating income relevancy
Explanation
Low-level managers generally control day-to-day operations, so their decisions focus on improving or maximizing operating income. Net income includes broader financing and tax effects that are usually outside their direct control.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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