what are managerial uses of cost
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While costing is useful for setting a normal sales price, it is also useful for determining whether or not to take special orders at lower prices. In many cases, fixed costs of production, such as rent and management salaries, are already covered by normal production.
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The following are some uses of the managerial costing technique:
✞Fixation of selling prices.
✞Make or buy decisions.
✞Selection of a suitable product mix.
✞Alternative methods of production.
✞Profit planning.
✞Suspending activities, i.e., closing down.
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