In order to make decisions, managers need to know:
A)actual costs
B)budgeted costs
C)both costs
D)neither cost

Question

Quizplus · Accepted Answer

Managers need both actual costs and budgeted costs in order to make informed decisions. Actual costs tell managers how much was actually spent, while budgeted costs show how much was planned to be spent. Comparing actual costs to budgeted costs allows managers to identify areas where they may be overspending or find areas where they can allocate more funds. Therefore, having access to both types of costs is crucial for decision making.

In Order to Make Decisions, Managers Need to Know