2) Do you agree that prior management decisions affect cost management?

A) Yes. Managers should always follow prior management decisions, for example, in the determination of the EOQ.

B) No. Managers should ignore prior management decisions.

C) Yes. Managers should always strive to lower the costs incurred last year, as their number 1 priority.

D) Yes. The only prior management decisions that can affect cost management going forward, are concerned with employee wages. All other decisions can be changed.

E) Yes. Prior management decisions can affect any area of the business operations, and commit the organization to the subsequent or continued incurrence of costs in such areas as material handling, and plant construction, for example.