Question

No single system can adequately answer the demands made by diverse functions of cost systems. While companies can use one method to capture all their detailed transactions data, the processing of this information for diverse purposes and audiences demands separate, customized development. Companies that try to satisfy all the needs for cost information with a single system have discovered they can't perform important managerial functions adequately. Moreover, systems that work well for one company may fail in a different environment. Each company has to design methods that make sense for its particular products and processes. Describe the costs and benefits of having a single measurement system?

Answer 1

Costs and benefits of having a single measurement system

Step-by-step explanation:

Costs-

To order for managers to collect all sorts of important information in a well-structured way, simple measuring mechanisms are not enough to help them decide the major issue in a dynamic and productive environment.The manager now wants operational productivity to calculate the expense of the manufacturing unit, which is decreased as the market transitions to low-cost output, but the one-off measurement system is not sufficient for supplying such cost results.

Benefits-

If a company uses a common metric, the installation of cost structures and the maintenance of them to calculate and assess different product costs in order to achieve efficiency would be very easy and cost efficient to combat competition.