Exercise $1-3$ Identifying Cost Management Information System Objectives

Consider the following actions associated with a cost management information system:

a$.$ Eliminating a non$-$value$-$added activity

b$.$ Determining how much it costs to perform a heart transplant

c$.$ Calculating the cost of inspecting components from an outside supplier

d$.$ Developing and using a budgeted income statement for a division

e$.$ Eliminating the need to inspect by improving the quality of products and processes

f$.$ Determining whether selling a product at split$-$off is more profitable than processing it further before selling it

g$.$ Calculating the cost of producing an e$-$book

h$.$ Using a trend report on quality costs to assess the effectiveness of a quality improvement program

i$.$ Determining the units that must be sold to break even

j$.$ Calculating the cost to perform a tooth extraction

k$.$ Determining the total cost of moving goods

Using JIT purchasing and manufacturing to significantly reduce inventories

m$.$ Using unit product cost to help develop a bid price

Exercise $1-3$ Identifying Cost Management Information System Objectives

OBJE

Consider the following actions associated with a cost management information system:

a$.$ Eliminating a non$-$value$-$added activity

b$.$ Determining how much it costs to perform a heart transplant

c$.$ Calculating the cost of inspecting components from an outside supplier

d$.$ Developing and using a budgeted income statement for a division

e$.$ Eliminating the need to inspect by improving the quality of products and processes

f$.$ Determining whether selling a product at split$-$off is more profible than processing it further before selling it

g$.$ Calculating the cost of producing an e$-$book

h$.$ Using a trend report on quality costs to assess the effectiveness of a quality improvement program

i$.$ Determining the units that must be sold to break even

j$.$ Calculating the cost to perform a tooth extraction

k$.$ Determining the total cost of moving goods

Using JIT purchasing and manufacturing to significantly reduce inventories

m $.$ Using unit product cost to help develop a bid price

Classify the above actions as being associated with one of the following objectives of a cost

Required: management information system:

Costing of products, services, and other objects of interest

Planning and control

Decision making