Question

Discuss the different cost concepts relevant to managerial decision for planning and control

Answer 1

Business and your actual trading. Your business plan will include things like short and long-term goals, the amount of capital you have available for the business and how you will set up your office. Your trading plan includes the details of trading: what you will trade and how you will trade it. Your plan should be so objective and concise that you could hand it over to another trader and they would be able to execute it exactly.

Answer 2

However, what is really relevant for managerial decision-making is the change in cost rather than its traceability. But it is necessary to take into consideration those situations in which an increase in the output of product A results in an increase (or decrease) in the marginal cost of product B.