Outline the advantages to a business firm of using an integrated cost accounting system.

Outline the advantages to a business firm of using an integrated cost accounting system.

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Advantages of integrated cost accounting system

(i). There is no duplication of efforts as compared to an interlocking system where there are
separate records for cost accounting and financial accounting.

(ii). It is cheaper to set up and operate since no additional department personnel and books
have to be availed.

(iii). There will not be any need for a profit reconciliation statement.

(iv). The cost control objective/function will be carried out throughout the entire organization.

(v). Requires that all the staff be conversant with cost accounting.

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marto answered the question on February 19, 2019 at 12:31

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