Ovidius University Annals: Economic Sciences Series (Jan 2020)
The Influence of Costs on the Economic Substantiation of the Decision with an Impact on Business Evaluation
Abstract
In the current context of economic development, achieving an overview of the usefulness and efficiency of cost information - managing and reducing it - is relevant for managers in making the best decisions in the decision-making process. Management accounting is the main source of obtaining information on costs, respectively, the basis of forecasts in managerial activity. In order to make the best managerial decisions, the efficient organization of the activity of an economic entity requires the improvement of management methods, which involves reconsideration of costing methods, the results being able to provide managers with the most relevant and efficient information. The objective of this study is to demonstrate that there is a congruent interdependence between the informational quality of costs, the decision-making efficiency of managers and their impact on the entire economic activity. The paper concludes with the results and conclusions of the authors regarding the importance of costs in the decision act.
