Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen

Exercise 19

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
e. Developing and using a budget for the Maintenance Department
f. Estimating the cost of developing a new product
g. Determining whether it is less costly to make a component or to buy it from an outside 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 pre-specified profit
j. Calculating the cost of performing a routine appendectomy
k. Determining the total cost of an Engineering Department
l. 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 with 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