Introduction

SPM was introduced in the government administration system through the Public Administration Development Circular No. 3 (1992). SPM is a method or process to compile, calculate and analise the total actual cost of output for every programme and government activity.

SPM Flow Chart

Benefits of SPM

  1. Instil cost awareness within the management
  2. Comparison between actual cost and planned cost
  3. Assist planning process, implementation control and evaluation
  4. Know the flow direction of component output cost
  5. Basis for the pricing of a particular output

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