Complements are goods or services that are typically consumed together, where the demand for one increases the demand for the other. In accounting, understanding complements is crucial for cost analysis and pricing strategies, as they can impact revenue and profitability. For instance, printers and ink cartridges are complements; a rise in printer sales often leads to increased demand for cartridges. This concept aids in strategic decision-making and financial forecasting.
Get Your FREE Exam Secrets Cheat Sheet!
Plus a 3-Part CMA Video Course
82,000+ accounting and finance pros got their free CMA cheat sheet.
Get yours too, today!