Cost management produces information for internal users. Specifically, cost management identifies, collects, measures, classifies, and reports information that is useful to managers for determining the cost of products, customers, and suppliers, and other relevant objects and for planning, controlling, making continuous improvements, and decision making. The accounting information system within an organization has two major subsystems: a financial accounting system and a cost management accounting system. One of the major differences between the two systems is the targeted user. Financial accounting is devoted to providing information for external users, including investors, creditors (e.g., banks and suppliers), and government agencies.

KEYWORDS: Cost Management, Profitability, Decision Making, Information System, Investors.