Question

High quality cost management systems systems should have an organization-wide perspective. Which of the following would NOT be a benefit of a cost management system?:

a. increases speed by ignoring non-financial information
b. reduces duplicate data storage and use of data
c. improves timeliness of reports
d. increases the efficiency of generating reliable and accurate information.

Answer 1

Ignoring non-financial information is not a benefit of a cost management system; rather, such systems should integrate all types of relevant data to provide comprehensive insights for decision-making.

Step-by-step explanation:

Among the benefits of a high-quality cost management system are reducing duplicate data storage, improving the timeliness of reports, and increasing the efficiency of generating reliable and accurate information. However, option a, which suggests that a benefit would be to increase speed by ignoring non-financial information, would not be considered an advantage. In fact, ignoring non-financial information can lead to poor decision-making, as cost management systems should ideally integrate both financial and non-financial data to provide a comprehensive view of the organization's performance. High-quality cost management encompasses a holistic approach, considering various factors like efficiency, productivity, and the accuracy of information.