The correct answer is: C. Management accounting
Management accounting is a type of accounting that provides financial and non-financial information to managers within an organization. It is used to help managers make decisions about how to run the business, such as what products to produce, how much to charge for them, and how to allocate resources.
One of the key functions of management accounting is to help managers set prices for their products or services. This is done by providing information about the costs of production, the prices of competitors’ products, and the demand for the company’s products. This information can be used to develop pricing strategies that will help the company maximize its profits.
In addition to helping with price fixation, management accounting can also be used to:
- Plan and control operations: Management accounting can be used to develop budgets and forecasts, which can help managers plan for the future and control costs.
- Evaluate performance: Management accounting can be used to measure the performance of different parts of the business, such as departments or products. This information can be used to identify areas that need improvement.
- Make decisions: Management accounting can be used to provide information that helps managers make decisions about a variety of issues, such as whether to invest in new equipment or expand into new markets.
Overall, management accounting is a valuable tool that can help managers make better decisions about how to run their businesses. It provides information about costs, revenues, and other factors that can be used to set prices, plan and control operations, evaluate performance, and make decisions.