Cost Management of Ave Coconut Products

A cost management system Is part of an overall management information and control system. A cost management system (CMS) consist of formal methods developed for planning and controlling an organization’s cost generating activities. The study is focused on analyzing the Cost Management System of AVE Coconut Products. The purpose of the research is to identify the strengths and weaknesses of the current cost management system of the business to determine if there is an association between planning, budgeting, and controlling of cost and product costing. Weighted mean formula was used to find out the strength and weaknesses of the cost management system and the chi-square test is used to determine if there is an association between planning, budgeting and controlling of costs and product costing. The result shows that the activities on planning are well-established. While on the part of budgeting, controlling and product costing, the activities are sufficient but some activities require further improvement. The result also implied that the respondent’s perception on each dimension is not independent with their perception on the other dimensions. It is shown also that there is significant association between planning, budgeting, and controlling of costs and product costing. Overall, the cost management system is adequate for the company.