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Cost accounting information is in general unsuitable for decision making because the information required for decision making is not what is traditionally provided by conventional cost accounts.
Information for decision making should instead be based upon relevant costs and endeavour to incorporate uncertainty as these decisions will be made in the future…
Mr John Could you explain this idea? I’m not sure of it….Thank you very much…In future, if you want me to answer then you must ask in the Ask the Tutor Forum – this forum is for students to help each other.
I don’t know where you found this statement, but whoever wrote it is just trying to sound clever (I hope it is not something that I wrote 🙂 )
What they are really trying to say is that normal cost accounting information is recording what has happened in the past. However to make decisions for the future we really need to make estimates for the future and also to think about how certain or not we are about these estimates for the future.
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