Ch. 2 outline - Ch. 2 Basic Cost Management Concepts...

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Ch. 2 – Basic Cost Management Concepts Accounting Information Systems Interrelated manual + computer parts, use processes such as collecting, analyzing, summarizing data to provide info to users Two key features: Inputs are usually economic events Operational model of an accounting information system is critically involved with the user of information, since the output of the information system influences users Can be divided into 2 major subsystems: financial accounting system cost management information system Financial Accounting System Concerned with producing outputs for external users Processes are governed by IASB, FASB, SEC Outputs: financial statements (balance sheet, income statement, statement of cash flows) Cost Management Information System Concerned with producing outputs for internal users Provides information for 3 broad objectives: Costing services Planning and control Decision making Value chain – set of activities required to design, develop, produce, market, deliver, and provide post-sales service for the products/services sold Relationship to Other Operational Systems and Functions Benefits the entire organization, should have an organization-wide perspective Must interact with all systems Enterprise Resource Planning (ERP) systems Different Systems for Different Purposes The cost management information system has 2 major subsystems: Cost accounting information system Cost management subsystem designed to assign costs to individual products and services and other objects of interest to managers Operational control information system Provide accurate and timely feedback concerning the performance of managers and others
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This note was uploaded on 03/12/2012 for the course ACCT 211 taught by Professor Kamlet during the Spring '08 term at Binghamton University.

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Ch. 2 outline - Ch. 2 Basic Cost Management Concepts...

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