Why are cost estimates important to an organization? What types of decisions are affected by understanding costs

Why are cost estimates important to an organization? What types of decisions are affected by understanding costs

write a 2 page essay in Cost Analysis answer those questions and please provide me withe at least 2 resources

Why are cost estimates important to an organization? What types of decisions are affected by understanding costs?

What are the primary challenges in determining the costs of units of production or service?

What are essential elements of traditional costing and activity-based costing?

What are some shortcomings of traditional costing vs. activity-based costing?

…………………Answer preview……………………..

Cost estimates are important to an organization and especially when it comes to organizational projects. They aid in making investment decisions where the possible returns are calculated. Estimates are also used for comparing alternatives in the case of project plans that are sustainable. Contractor and vendor validation…………………….