The CEO of your company has asked you to prepare a written presentation to be given at the next board of directors meeting on why different types of cost information need to be reported to support different managerial purposes and decisions. In a paper of 2–3 pages, discuss the following:
APA Format with Reference page
- What types of cost information are reported to support managerial purposes and decisions?
- Describe 2 major categories of purposes that are supported by cost information.
- Describe how cost information supports both of these categories.
- What is a cost object and how is it used by the management accountant?
- Explain how to arrive at the derivation of cost.
To achieve the management goal of maximization of profit, better planning and decision making is necessary. For this purpose, the many cost information are used. The various types of cost may be classified and fixed, variable, mixed, direct and indirect cost. These classification are very key to do planning and making of various decision.