Management Accounting 2 Assignment

1. How is accounting information relevant in decision making?

accounting is a way for businesses to keep track of their operations, but also to provide a
snapshot of their financial health. By providing data through a variety of statements including
the balance sheet and income statement, a company can give investors and lenders more power
in their decision-making.

2. Explain what is cost and benefit in decision making.

A cost-benefit analysis is a systematic process that businesses use to analyze which
decisions to make and which to forgo. The cost-benefit analyst sums the potential
rewards expected from a situation or action and then subtracts the total costs associated
with taking that action

3. What are the types of decisions in Managerial Accounting?

There are three types of decisions (marketing, production, and financial) requires that
management identify the specific decisions under each category. The identification of specific
decisions is critical because only then can the appropriate managerial accounting technique be
properly used.