|
Managers rely on managerial accountants to provide useful cost information to support decision making. What is a cost? A cost is a payment of cash or its equivalent or the commitment to pay cash in the future for the purpose of generating revenues. A cost provides a benefit that is used immediately or deferred to a future period of time. If the benefit is used immediately, then the cost is an expense, such as salary expense. If benefit is deferred, then the cost is an asset, such as equipment. As the asset is used, an expense, such as depreciation expense, is recognized.
|
