I have been asked by Management to set up a good Cost And Management Accounting System but the first thing I have to understand are or is the main purposes/objectives of having a Cost And Management Accounting System?
The system should at least meeting the following requirements:
· To allocate costs between cost of goods sold and inventories for internal and external reporting;
· To provide relevant information to assist managers make better decisions and
· To provide information for planning, control and performance measurements
It is advisable that a database needs to be maintained with detailed cost appropriately coded or classified to enable the Management or Cost personnel to extract relevant cost information to meet the aforesaid requirements.
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