Management Reporting and Cost Control-A Better Way

Mining companies have been required to enter a "new era of management" in the 1980's as they strive to become more efficient in an increasingly competitive market place. One response for many companies has been to modify their mine accounting systems to make them more effective for cost control and decision-making. This paper discusses some of the major issues in developing and implementing a standard costing system as part of improved management reporting and cost control procedures. It describes the key features and benefits of a computerized standard costing system with particular emphasis on budget-setting and variance analysis. It also identifies important factors to be considered in order to achieve successful project planning and Implementation.