Chapter 1–Introduction to Cost Management

1. An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into information that is provided to users.
   True    False

2. The two major subsystems of the accounting information system are the financial accounting information system and the cost management accounting information system.
   True    False

3. The cost management information system is primarily concerned with producing outputs for external users.
   True    False

4. The three broad objectives of financial accounting information systems are to provide information for costing out services and products, planning and control, and decision making.
   True    False

5. Preparing reports for division managers is an activity associated with the cost management information system.
   True    False

6. The cost management information system has two major subsystems: the cost accounting information system and the operational control information system.
   True    False

7. Changes in the way business is conducted worldwide have broadened the focus of cost management accounting systems.
   True    False

8. One of the major advances in information technology that affects firms is the emergence of electronic commerce.
   True    False

9. The service sector of the U. S. economy has decreased in importance as traditional industries have declined in importance.
   True    False

10. Enterprise resource planning (ERP) software has the objective of providing an integrated system capability and is able to run all the operations of a company.
    True    False