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Statement A: Costs may be classified in a number of ways including classification by behaviour, by function, by expense type, by controllability, and by relevance.

Statement A:

Costs may be classified in a number of ways including classification by behaviour, by function, by expense type, by controllability, and by relevance.

Statement B:

Management accounting should assist in EACH of the planning, control and decision making purposes within an organisation.

Required:

Discuss the ways in which relationships between statement (A) and statement (B) are relevant in the design of an effective management accounting system.

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