Role Of Cost Analysis In Managerial Decision Making

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Recommended: Decision making process from a manager's point of view

Decision-making is a process where by managers respond to chances and threats. In this process managers analyze alternatives to deal with chances and threats and finally pass decisions about objectives and strategies. Managerial decision- making relies heavily on the availability of relevant, reliable and timely information. Till now , managers depend on the company’s management information system to obtain relevant, reliable and timely information needed to base decisions. The accounting information system is a sub-system of the over all management information system and originate information to be used in a managerial decision-making.
The system provides management with quantitative and non-quantitative data and information which can be useful to be used by management in making decisions. …show more content…

In this article, i will discuss the role of cost analysis in managerial decision making in profit oriented companies. Cost analysis is definition is as the allocation of costs to provide rates of what a program's costs and benefits are likely to be, before it is implemented.. In profit-oriented organizations, cost and analysis reports are useful in various management decision making areas: product pricing and costing, cost management, special decisions, profit planning, capital investment decisions, standard setting, product and customer profit, and the like. In

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