Determining costs and benefits in decision making process

Question

Write down a short note on determining costs and benefits in decision making process?

Answer 1

Determining costs and benefits: Most of the management decisions need knowledge of the costs and benefits of pursuing a specific course of action like providing a service, generating a new product or closing down the department. Decision will include weighing the costs against the advantages. The management accountant can aid managers by giving details of specific costs and benefits. In some situations, costs and benefits might be extremely difficult to quantify; though, some approximation is generally better than nothing at all.