A cost management system provides information for strategic management decisions and financial reporting.

Question

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A cost management system is designed to collect, analyze, and report information related to the costs of production, operations, and other business activities. This information is used by managers to make strategic decisions related to pricing, product mix, resource allocation, and more. In addition, cost management systems are also used for financial reporting purposes, providing data on the costs of sales, inventory, and other expenses that affect the company's bottom line.

A Cost Management System Provides Information for Strategic Management Decisions