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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? |
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Answer: 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. |