Final answer:
(D) internal managers
Cost management is key for internal managers who require detailed cost information to make informed decisions about the company's operations and strategies. It helps in assessing additional external costs and managing requirements under command-and-control regulation, ensuring that business activities align with both economic and social goals.
Step-by-step explanation:
Cost management is concerned with producing outputs for internal managers. Internal managers use cost information to make decisions about pricing, budgeting, cost control, and other managerial functions. This contrasts with external reporting, which serves regulatory authorities, investors, and creditors.
Cost management helps in understanding the additional external cost, such as environmental impact or social costs not reflected in financial statements, and in making well-informed decisions that contribute to the overall biodiversity and societal well-being.
Moreover, it is important in scenarios where command-and-control regulation dictates specific production quotas or prices, which may not fully accommodate a firm's cost structure, potentially leading to losses without government subsidies.