Determine accurate departmental and product costs as a basis for the evaluation of the cost efficiency of departments and the profitability of different products.

Motivate executives for a high level of effort to achieve the goals targeted by senior management.

Right incentives are provided to the managers in order to make a decision consistent with the objectives of the senior management.

Control the consumption of user departments to support services.

Identify the fairly rewards that managers earn for their effectiveness in their decisions.