Match each of the following roles of a cost management system, 1 through 6 , with the most appropriate example, a through \(f\).

Transcribed Image Text:

Cost Management System Role 1. Develop accurate product/ service costs 2. Assess product/service life cycle performance 3. Improve understanding of processes/activities 4. Control costs 5. Measure performance 6. Support organizational goals Example a. b. C d. e. f. - - Analyzing 5 years of warranty expense after an investment in a product update Articulating how costs are accumulated in each particular job in a job costing system Comparing quarterly revenue by major product to the prior year Determining the financial and nonfinancial implications of a business purchase Determining total material variance and its quantity and usage components Using activity-based costing to determine the cost of providing a specific service