Purpose of Costing/Management Accounting Information System


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Financial accounts indicate the results of a business over a period of time. They deal with historic or past costs and are concerned with stewardship accounting.

 

A management accounting/ cost statement provides information to allow managers to plan, control and organise the activities of the business. The purpose of a costing/management accounting information system is:

 

1.     to provide information about product costing to be used in financial

statements.

 

2 .     to provide information for planning, controlling and organising.


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