Information that a manager need to make a decision
What is the various information that a manager need to make a decision?
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The managers might require information to help them decide whether to:
a) Develop new products or services (as with the computer manufacturer developing a latest range of computers).
b) Raise or reduce the price or quantity of existing services or products.
c) Borrow money to help the financial condition of the business.
d) Raise or reduce the operating capacity of the business.
Responsibility Center: It is an organizational unit headed by the manager or a group of managers who are responsible for its actions. The responsibility centers can be measured as revenue centers (that is responsible for revenue or sa
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Controllable Cost: A cost which can be influenced by the action of responsible manager. The word always refers to a particular manager as all costs are controllable by somebody.
Direct Cost: The cost of resources directly used by an activity. The direct costs are assigned to actions by direct drawing of units of resources used by individual actions. A cost which is particularly recognized with a single cost o
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