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FREE O F COST ISBN : 817666376xSCANNER\'S APPENDIX IOWA Stage IV December 2006Paper 17 Management Accounting Decision MakingChapter 2 : Basic Concepts in Decision Making 2006 Dec [5] (b) A Company
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Gather all necessary financial data related to costs and expenses.
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Cost and management accounting is a field of accounting that focuses on the internal cost management processes of an organization to aid in decision-making, budgeting, and performance management.
Organizations that need to manage their costs effectively, often including manufacturing firms, service providers, and businesses required to report financial data to stakeholders.
To fill out cost and management accounting reports, an organization must collect data on costs, categorize expenses, and analyze the data to compile an accurate report reflecting their cost structure and management strategies.
The purpose of cost and management accounting is to provide management with relevant financial information to make informed business decisions, improve efficiency, control costs, and enhance profitability.
The information typically reported includes cost of goods sold, operating expenses, overhead costs, budget variances, and profitability analyses.
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