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
b. Issuing a quarterly earnings report
c. Determining the unit product cost using TDABC
d. Calculating the number of units that must be sold to break even
e. Preparing a required report for the SEC
f. Preparing a sales budget
g. Using cost and revenue information to decide whether to keep, or drop, a product line
h. Preparing an annual statement of financial position that conforms to generally accepted accounting principles (GAAP)
i. Using cost and revenue information to decide whether to invest in a new production system or not
j. Reducing costs by improving the overall quality of a product
k. Using a debt-equity ratio and liquidity ratios from a balance sheet to assess the likelihood of bankruptcy
l. Using a public company’s financial statements to decide whether or not to buy its stock

  • CreatedSeptember 01, 2015
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