Explain how the unit cost information is used by managers in the management process
Managers depend on relevant and reliable information about costs to manage their organizations.
· When planning, unit cost information will help managers to set reasonable selling prices and estimate the cost of their products or services.
· When performing every day tasks, unit cost information is helpful in controlling costs and ensuring quality.
· While evaluating the results, managers use unit cost information to analyze performance by comparing job estimates with actual job costs.
· While communicating the results to internal and external users, managers use unit cost information to prepare financial statements and internal management reports.
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