Question

Which among the following costs are not useful for managerial decision making?

Sunk Cost

Marginal Cost

Standard Cost

None of the above​

Answer 1

Answer:

Sunk Cost

Explanation:

Sunk Cost is the costs are not useful for managerial decision making

Answer 2

Answer:

The cost which is not useful for managerial decision making is sunk cost.

Explanation:

As per the double entry system of accounting and accounting standards, all entries in the books of are accounted at the acquisition cost or the historical cost.

All historical costs are proven to be sunk costs or past cost or irrelevant costs.

Decision making is the key for all management accounting. Managers will focus on the future costs to be incurred.

Managers also focus on the reduction of present cost. Marginal cost and standard cost analysis provide an insight for forecasting and reducing the costs.