Cost Mangement∶ accounting and control解答手册第一章.docVIP

PAGE PAGE 1 CHAPTER 1introduction to cost management questions for writing and discussion 1. A cost management system is primarily concerned with producing outputs for internal information users, using inputs and processes needed to satisfy management objectives. A cost management system is not bound by externally imposed criteria that define inputs and processes. Instead, the criteria that govern the inputs and processes are set by people within the company. A financial accounting system is primarily concerned with producing information for the company’s external information users. Cost management differs from financial accounting in the following major ways: (1) an internal focus, (2) an emphasis on the future, (3) freedom from GAAP and other mandatory rules, (4) a multidisciplinary scope, (5) an evaluation of individual segments within the firm, and (6) the provision of more detailed information. 2. The three broad objectives of a cost management information system are (1) to cost out products, services, and other cost objects; (2) to provide information for planning and control; and (3) to provide information for decision making. 3. The cost accounting system is a cost management subsystem designed to assign costs to products, services, and other objects as management needs specify. The operational control system is a cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers and others relative to their planning and control of activities. 4. Factors affecting the focus and practice of cost management are global competition, service industry growth, advances in information technology, advances in the manufacturing environment, customer orientation, new product development, total quality management, time as a competitive factor, and efficiency. Global competition means that companies are now competing with the best of the best. Accurate, timely, and relevant accounting data are crucial in appropriately ma