How to design a new or revise a current cost management system will depend on the characteristics of the company. Important factors of a company include the following items 1 through 7. For each of the questions listed a through \(g\), determine what company factor would be relevant.

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Company Factor 1. Organizational form 2. Organizational structure 3. Organizational culture 4. Organizational mission 5. Organizational competencies 6. Suppliers 7. Competitive environment Clarifying Question How do established prices compare to prices in the market? a. b. How is the importance of ethical behavior communicated to employees? C. d. e. f. 9. - How much value is placed on timeliness, quality, customer service, cost control and responsiveness? Is being a cost leader or differentiating product more important? Should items be purchased from one source or from multiple sources? Should management decision making be centralized or decentralized? Would an LLP or a corporation be more appropriate as the basis of the entity?