(1) Costs may be classified in a number of ways including classification by behaviour, by function, by expense type, by controllability and by relevance.

(2) Management accounting should assist in EACH of the planning, control and decision making processes in an organisation.

Discuss the ways in which relationships between statements (1) and (2) are relevant in the design of an effective management accounting system.

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Answer The cost of an organization may be classified on a no of factors These factors are as follows on the basis of behavior fixed variable and semiv... View the full answer