FILM-6010 Study Guide - Final Guide: Marginal Cost, Management Accounting, Unit 100
14 Jun 2020
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Document Summary
Exercises from atkinson a. a. , kaplan r. , matsumura e. l. , young s. m. , (6th edition) 3-1 what are some different managerial uses of cost information. Cost information plays important role in strategy development and in monitoring the results of implementing the strategy. Cost information is used in pricing, product planning, budgeting, performance evaluation and contracting. Organization faces market-determined price, they will use the product cost information to decide whether its cost structure will allow it to completely profitably. Organization sets its price, often set a price that is an increment of its product"s cost. An organization uses cost information to make decision in pricing the products. The product price can be determined after considering cost structure, and after analyzing whether it will earn profit for the organization. Use target costing to focus efforts in product and process design on developing a product that has a good profit potential. Basis for taking decisions about price, distribution and promotion of the product.
