UNIT 5: MANAGEMENT ACCOUNTING
                 › LO 1: Demonstrate an understanding 
                   of management accounting systems.
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            UNIT 5: MANAGEMENT ACCOUNTING
            P 2 Explain different methods used for 
            management accounting report
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            DIFFERENT TYPES OF MANAGMENT 
            ACCOUNTING SYSTEMS
            A cost accounting system (also called product 
            costing system or costing system) is a 
            framework used by firms to estimate the cost 
            of their products for profitability analysis, 
            inventory valuation and cost control.
            Estimating the accurate cost of products is 
            critical for profitable operations. 
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            DIFFERENT TYPES OF MANAGMENT 
            ACCOUNTING SYSTEMS
            A firm must know which products are profitable and 
            which ones are not, and this can be ascertained only 
            when it has estimated the correct cost of the product. 
            Further, a product costing system helps in estimating 
            the closing value of materials inventory, work-in-
            progress and finished goods inventory for the purpose 
            of financial statement preparation.
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             INVENTORY MANAGEMENT SYSYTEM
            An inventory management system is the combination 
            of technology (hardware and software),processes and 
            procedures that oversee the monitoring and 
            maintenance of stocked products. Whether those 
            products are company assets, raw materials and 
            supplies, or finished products ready to be sent to 
            vendors or end consumers. 
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