The productivity and efficiency of the employees should be ensured in order to reduce costs. The analysis and determination of costs of JM is an essential part of management accounting. The several types of costs need to be identified. These are direct costs (i.e. raw materials, indirect costs (manufacturing overhead), period costs which are not incorporated, fixed costs (do not vary with the volume of production) and variable costs (varies the volume of production) (Merwe, 2006).
Since the establishment of a separate management accounting system requires more cost than the development of this system on the basis of accounting, accountants at JM should consider a subsystem of management accounting. Further development of the necessary accounting information management in this enterprise will lead to the development of a more inclusive system of collecting information than is possible within the framework of accounting. It is important to meet high demands on the information provided. Information provided by the decision maker must be complete for the decisions to be taken at the same time. The greater the amount of information, the more information is ignored, in the absence of support mechanisms (automatic acceptance of “quality” of decisions in decision theory). In management accounting in case of JM, accurate information is more important than the pace of delivery.