Question

What do you think which decisions might be taken by the managers of the company
What type of cost information might be required for such decisions
How that cost information could be obtained​

Answer 1

Answer:

If you have two choices, and you choose A instead of B, relevant costs are those costs that will be different from those associated with choice B. These are costs that directly affect cash flow, the money coming in and going out of a business. Relevant costs include differential, avoidable, and opportunity costs.Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process.The size of the variable cost margin is a valuable piece of information that a manager can use as a decision support to offer or not different products, namely to increase sales to the cost on the most profitable ones and to lower the costs on the non-profitable ones.Relevant information includes the predicted future costs and revenues that differ among the alternatives. Any cost or benefit that does not differ between alternatives is irrelevant and can be ignored in a decision. All future revenues and/or costs that do not differ between the alternatives are irrelevant.