Identifying cost management information system objectives

E Exercise 1-4 IDENTIFYING COST MANAGEMENT INFORMATION SYSTEM OBJECTIVES Consider the following actions associated with a cost management information system: a. Reducing the cost of a product by eliminating waste b. Determining how much it costs for a single tooth implant C. Calculating the cost per unit of reworking a defective product d. Using product cost as the basis for a bid decision c. Developing and using a budget for the Maintenance Department f. Estimating the cost of developing a new product B: Determining whether it is less costly to make a component or to buy it from an out side supplier h. Investigating and taking corrective action whenever there is a significant difference between actual materials cost and standard materials cost i. Determining the units that must be sold to earn a prespecified profit j. Calculating the cost of performing a routine appendectomy k. Determining the total cost of an Engineering Department 1. Improving quality to decrease total quality costs m. Determining whether a product line should be dropped or kept Required: Classify the above actions as being associated w y one of the following objectives of a cost management information system: 1. Costing of products, services, and other objects of interest 2. Planning and control 3. Decision making