The cost-accounting processes that a business deploys maintain the integrity of its decision-support structures. They do this by codifying the allocation of cost transactions to the master data objects.

Processes must maintain the logic of the cost structures agreed by decision makers to engender their trust and ensure buy-in to results. Most importantly, the processes deployed should draw attention to opportunities to continuously improve cost-competitiveness; they should also be applicable to all the business' activities and its supply chain.

In addition, processes must be able to discretely record the cost impact of improvement initiatives; that way, they can report the return on investment that’s delivered.

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Activity-Based Costing (ABC)