Response to the following problem:
You Decide: Does cost information provide help in running a business, or is it only useful within the bounds of an accounting system?
Your friends in the MBA program at your university seem to think that cost information in a company is helpful but that it is rarely used in the decision-making process within a company. One friend said, "You have to know how to work with people and manage what they do on a day-to-day basis. Cost information has its place and time, but is often not relevant. The executives in upper management have more important things to consider in running a business than the cost of products and services!" Do you agree or disagree?