18 Questions
What is the main purpose of a financial accounting system?
To provide information to external users like investors and government agencies
Which system is concerned with assigning costs to individual products and services as specified by management?
Cost Management System
How has global competition impacted the demand for cost information?
Increased the demand for more accurate information
In the growth of the service industry, what factor has increased competition?
Deregulation of many services
Which system provides accurate and timely feedback concerning performance?
Operational control system
What is one of the functions of an operational control system?
To assess activities that should be performed
What is the main concept behind Just-in-Time Manufacturing?
Producing products only when needed and in quantities demanded by customers
In Computer-Integrated Manufacturing, what is typically a response to the increased need for quality and shorter response time?
Following a Just-in-Time approach
Which concept emphasizes the importance of value chain activities in delivering products and services to customers?
Customer Orientation
What is an important consideration during New Product Development to control costs?
Using target costing and activity-based management
How does Theory Of Constraints contribute to improving both manufacturing and nonmanufacturing activities?
By reducing waste in production processes
What major impact did Advances in Information Technology have on operational control systems?
Enabled continuous monitoring and control of systemwide operations
Which cost management system emphasizes tracing over allocation and aims to improve cost information and accuracy?
Activity-Based
What type of costs change in total in direct proportion to changes in an activity driver?
Variable Costs
In the context of cost behavior, what is the relevant range defined as?
The range of activity levels
Which cost management system measures performance by comparing actual costs to standard or budgeted costs?
Functional Based
What type of costs are constant within the relevant range as the level of the activity driver varies?
Fixed Costs
Which type of costs can be represented by a linear equation within the relevant range, where YV = VX?
Variable Costs
Explore the differences between financial accounting systems and cost management systems in Chapter 1 of Cost Management. Learn how each system provides information for different purposes and users.
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