COST ACCOUNTING
INFORMATION FOR DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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assign responsibility for the decision.
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provide relevant revenue and cost data about each course of action.
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determine the amount of money that should be spent on a project.
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decide which actions that management should consider.
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Detailed explanation-1: -The elimination of an unprofitable product line may adversely affect the remaining product lines. A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to: provide relevant revenue and cost data about each course of action.
Detailed explanation-2: -Managerial accounting provides the information needed to fuel the decision-making process. Managerial decisions can be categorized according to three interrelated business processes: planning, directing, and controlling. Correct execution of each of these activities culminates in the creation of business value.
Detailed explanation-3: -a. Determine possible courses of action. The managerial accountants are involved when deciding the course of action as they analyse the financial data and help in preparing the budgets.
Detailed explanation-4: -Explanation: Management accountants prepare revenue and cost data for managers and decision makers.
Detailed explanation-5: -Cost accounting helps you to identify cost-effective solutions, informs decision-making, and facilitates cost benefit analysis.