ABOUT THE RELEVANCE OF COST INFORMATION IN MANAGERIAL DECISION-MAKING

Abstract

The article reveals the role of relevance of information in modeling alternative decisions and choosing the best one. It describes the essence of relevance in the context of the usefulness of information and semiotic aspects. The research finds that in managerial decision-making not any cost information is relevant, but only that which differs among the alternative courses of action. Economic growth and competitiveness created the environment when the lack of relevant and, therefore, useful cost information did not allow to develop sound management decisions, the effect of which contributed to a company's competitive advantage. All of this created crises of information relevance, which led to more advanced cost accounting methods eliminating the restriction of existing accounting system. The need to improve the theoretical and methodological aspects of cost accounting was particularly significant in the late 19^th century – during the scientific discoveries and the development of international trade, and in the last quarter of the 20^th century – during the market development.