SPM was introduced into the government system through the Public Administration Improvement Circular 3/1992. SPM is a method or process of gathering, calculating and analyzing the cost actual output for each government’s programme and activities.

• To instill cost awareness for the management
• Allows comparison between actual costs and planed costs
• Assists in planning processes, executions, control and evaluation
• Aware of the direction of changes component of the output costs
• Basis for determining the price for a particular output