Cost Management Systems

You are the manager of an accounting department and would like to hire another managerial accountant to focus on internal accounting. The chief executive officer (CEO) is not convinced that a managing accountant position is needed. Prepare a 2-page memo for the CEO on the following:

• Explain the objectives and characteristics of an internal accounting system.
• Include an explanation of the importance of this information to the company.
• Include an explanation of ethics in business and the managerial accountant's role in upholding the code of ethics.