Cost Decision Making

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Cost Decision Making

By | Feb. 2011
Page 1 of 17
Cost & Management Accounting

Cost Concept & Decision Making
Assignment No. 2

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Submitted By:

Sher Ali (MBA-I.T.)

Roll # : AD-513456

Course Code: 5538

Allama Iqbal Open University

Acknowledgments

October 18, 2010

From Sher Ali
While writing this case study I took assistance from many persons and I am grateful for this assistance from them. I would specially like to thank the Mr. Mohsin (Manager Accounts) who took the time to share their ideas and criticism with me. I also wish to express my sincere thanks to Mr. who offered valuable suggestions for this case Study

Sher Ali
Roll No: AD513456
MBA-IT (3rd Semester)

Abstract:
When you have a choice between two or more alternatives and you have to select one, you are making a decision. If there is no choice, you will have to simply follow or obey. So a decision implies a selection, a choice, a verdict or a nod. In everyday life, decisions are made. A personal decision affects an individual but organizational decisions cause a change, good or bad, to a lot many people known as stakeholders. So decision making in an organization must be systematic and not off the cuff. A good executive must be good at decision making.

Managerial/Cost accounting provides the essential data with which the organizations are actually run. Managerial accounting is also termed as management accounting or cost accounting. Management Accounting picks up data from cost database and prepare reports for the management to faciltate decision making. Both financial and non-financial data are used in the reports. In the non-financial data, both numerical and non-numerical information are used.

While numerical information consist of operational statistics such as units produced, raw materials consided and labour hours used, the non-numerical or qualitative information pertain to...