Cost Management Test 1 Questions &
Answers 2024/2025
Cost accounting information system - ANSWERSsubsystem designed to assign costs to individual
products and services.
Must assign costs to individual products
operational control information system - ANSWERSsubsystem designed to provide accurate and timely
feedback concerning the performance of managers and other relative to their planning and control of
activities.
concerned with what activities should be performed and assessing how well they are performed.
focuses on identifying opportunities for improvement and helping to find ways to improve
Cost management system - ANSWERSprimarily concerned with producing outputs for *internal* users
using inputs and processes needed to satisfy management objectives
more flexible than financial
Theory of Constraints - ANSWERSmethod used to continuously improve manufacturing and non
manufacturing activities.
sees all resources as finate, some more critical
Computer-Integrated manufacturing - ANSWERSuses CAD. uses computer for design
Total Quality Management - ANSWERScontinuous improvement and elimination of waste.
Objective of higher quality
, Line positions - ANSWERSparticipate in activities that produce and sell their company's product or
service
staff positions - ANSWERSsupportive in nature
indirect responsibility for organization's basic objectives
Controller - ANSWERSChief accounting officer
accounting
treasure - ANSWERSfinance function
Certified Management Accountant (CMA) - ANSWERSfinancial planning, performance, control
value chain - ANSWERSdesign->develop-> produce-> Market-> Deliver-> Postsale service
direct tracing - ANSWERSassigning costs to a cost object that are specifically or physically associated with
the cost object.
materials on blue jeans
salaries, oil used
driver tracing - ANSWERScause changes.
the use of drivers to assign costs to cost objects.
manager wants to know how much electricity is used. use machine hours to drive the costs.
allocation - ANSWERSindirect costs
assumed linkage
Answers 2024/2025
Cost accounting information system - ANSWERSsubsystem designed to assign costs to individual
products and services.
Must assign costs to individual products
operational control information system - ANSWERSsubsystem designed to provide accurate and timely
feedback concerning the performance of managers and other relative to their planning and control of
activities.
concerned with what activities should be performed and assessing how well they are performed.
focuses on identifying opportunities for improvement and helping to find ways to improve
Cost management system - ANSWERSprimarily concerned with producing outputs for *internal* users
using inputs and processes needed to satisfy management objectives
more flexible than financial
Theory of Constraints - ANSWERSmethod used to continuously improve manufacturing and non
manufacturing activities.
sees all resources as finate, some more critical
Computer-Integrated manufacturing - ANSWERSuses CAD. uses computer for design
Total Quality Management - ANSWERScontinuous improvement and elimination of waste.
Objective of higher quality
, Line positions - ANSWERSparticipate in activities that produce and sell their company's product or
service
staff positions - ANSWERSsupportive in nature
indirect responsibility for organization's basic objectives
Controller - ANSWERSChief accounting officer
accounting
treasure - ANSWERSfinance function
Certified Management Accountant (CMA) - ANSWERSfinancial planning, performance, control
value chain - ANSWERSdesign->develop-> produce-> Market-> Deliver-> Postsale service
direct tracing - ANSWERSassigning costs to a cost object that are specifically or physically associated with
the cost object.
materials on blue jeans
salaries, oil used
driver tracing - ANSWERScause changes.
the use of drivers to assign costs to cost objects.
manager wants to know how much electricity is used. use machine hours to drive the costs.
allocation - ANSWERSindirect costs
assumed linkage
