HMWORK CH1 - Cornerstone ch 1 hmw1 1 Classify each of the...

Cornerstone ch 1 hmw1
1. Classify each of the following actions as either being associated with the
financial accounting information system (FS) or the cost management
information system (CMS):
a
.
Determining the total compensation of the CEO of a public company FS
b
.
Issuing a quarterly earnings report FS
c
.
Determining the unit product cost using TDABCCM CMS
d
.
Calculating the number of units that must be sold to break even CMS
e
.
Preparing a required report for the SEC FS
f. Preparing a sales budget CMS
g
.
Using cost and revenue information to decide whether to keep, or drop, a product line
CMS
h
.
Preparing an annual statement of financial position that conforms to generally accepted
accounting principles (GAAP) FS
i.
Using cost and revenue information to decide whether to invest in a new production
system or not CMS
j. Reducing costs by improving the overall quality of a product CMS
k
.
Using a debt-equity ratio and liquidity ratios from a balance sheet to assess the
likelihood of bankruptcy FS
l.
Using a public company's financial statements to decide whether or not to buy its stock
FS
2. Identifying Cost Management Information System Objectives
Consider the following actions associated with a cost management
information system:
Select the appropriate objectives for each of the following actions of a cost
management information system:
Required:
a
.
Eliminating a non-value-added activity panning and comtrol
b
.
Determining how much it costs to perform a heart transplant costing of
service
c
.
Calculating the cost of inspecting components from an outside supplier
costing of product and service