What Are the Six Primary Goals of a Cost Management

question 98

Essay

What are the six primary goals of a cost management system? Illustrate how a CMS achieves each of these goals.

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Definitions:

Hire-Purchase

A contractual agreement where an asset is leased for a period, with the option to purchase at the end of the lease term.

Title

Title refers to the legal right to own or use property, evidenced by a document showing ownership such as a deed.

Buyer

A person or entity that purchases goods or services from another.

Agreement

A mutual understanding or arrangement, typically formalized by a contract, between two or more parties regarding their rights and obligations.