define a cost management system and identify its purpose.

A. A cost management system is a collection of tools and techniques that identifies how management's decisions affect costs. The purpose of a CMS is to provide cost information for operational and strategic decisions, and to measure inventory value and costs of goods manufactured (or purchased) for external reporting.

B. A cost management system is system of measuring profitability. The purpose of a CMS is to assist management in making pricing decisions.

C. A cost management system is collection of tools and techniques that measures the profits ofr external reporting. The purpose of a CMS is to provide financial information for investors and creditors.

D. A cost management system is system of reporting costs to management. The purpose of a CMS is to allow managers to make informed decisions.