The impact of cost information on managerial decisions

Abstract

The results of the enterprise’s activity depend on the continuous sequence of taken decisions, which have an effect on its activity. In the process of making managerial decisions, it is important to have information about costs, which leads to the choice of action courses in order to maximize profit. As an integral part of management accounting, cost accounting must provide operational and useful information in the decision- making process, starting with the composition of production costs and ending with the preparation of management reports.