The role of cost analysis in managerial decision making: A review of literature

This paper provides a review of empirical research on the role of cost analysis in managerial decision making in profit- oriented organizations. A well developed costing system is becoming increasingly important to profit oriented organizations. Cost analysis helps managers in making decisions in such areas like pricing, profit planning, setting standard cost, capital investment decisions, marketing decisions, cost management decisions and others. The review shows that, findings from different literatures stated that Cost analysis is crucial in various decisions and plays an important role in managerial decision making.