Answer:
Product cost information is essential for managers to identify cost improvement opportunities in a business. This information provides managers with an understanding of the costs associated with producing a product, which can help them to make informed decisions regarding the pricing, production, and profitability of the product.
By analyzing the product cost information, managers can identify areas where costs can be reduced, such as by optimizing the production process, reducing material waste, improving supplier relationships, or implementing new technology. They can also identify products that are not generating enough profit and may need to be discontinued or redesigned.
Product cost information can be used to create cost models that provide a detailed breakdown of the costs associated with producing a product. These models can be used to perform cost-benefit analyses and evaluate the impact of changes to the production process or product design.
In addition, product cost information can be used to support strategic decision-making. For example, it can be used to evaluate the cost-effectiveness of outsourcing production, expanding into new markets, or developing new products.
Overall, product cost information is a critical tool for managers to identify cost improvement opportunities and make informed decisions that can help to increase efficiency, reduce costs, and improve profitability.