A company actively engages in uniform costing and participates in inter-firm comparison. What is the primary focus of this practice for effective cost management? Question 17Answer a. By minimizing costs while maintaining desired quality. b. By increasing variable costs for improved products. c. By aligning cost structures with industry benchmarks. d. By ignoring industry comparisons to maintain independence
The primary focus of engaging in uniform costing and participating in inter-firm comparison for effective cost management is:
c. By aligning cost structures with industry benchmarks.
This practice allows companies to compare their costs with those of similar firms, helping them identify areas for improvement and align their cost structures with industry standards.