Antecedents and Consequences of Cost Information Usage in Decision Making

The value of a cost-management initiative rests on its ability in producing new and more accurate cost information for decision making process. As such, insights on antecedents and consequences of using different types of cost information in decision making are important in evaluating cost management initiatives. Behavioral research paradigm offers researchers a framework to interpret relationships between uses of different types of cost information and individuals’ behaviors. This article presents a review of behavioral studies on cost information usage in decision making. Findings of the review show that using different types of cost information in decision making have significant impacts on individuals’ behaviors. In addition, findings show that use of cost information are likely to be moderated by various human, system, and market factors.Findings of the review show that using different types of cost information in decision making have significant impacts on individuals’ behaviors. In addition, findings show that use of cost information are likely to be moderated by various human, system, and market factors.