Jose runs a doggy daycare. They are working on their budget for the upcoming year. They are currently breaking out the service costs from the period costs. Why would this be an important step for Jose in the budgeting process?
A. To determine if he should add a dog wash to his menu of services, or stay with just providing daycare.
B. To help him make decisions concerning costing, pricing, and profit so he can determine an optimal service mix.
C. To assist him in creating his cost of goods sold budget to determine effective pricing of his services.
D. To assist him in determining his cash balance, since only period costs can be expensed concerning a budgeted net profit.