THE ART OF DECIDING THROUGH COSTS
THE ART OF DECIDING THROUGH COSTS

Summary/Abstract: Managers in order to choose a course of action collaborate with management accountants, analyzing and presenting relevant data on which base decisions can be made. Choosing an alternative implies a differentiation between relevant costs and revenues and irrelevant ones. Relevant costs expect future costs, relevant revenues expect future income which varies depending on the directions of action. Typically, managers use in the decision process the following steps: Step 1: getting information; Step 2: predicting future costs; Step 3: choosing an alternative; Step 4: implementation of the decision; Step 5: performance evaluation to provide feedback.

• Details
• Contents