Chapter 2 Flashcards
system
set of interrelated parts that performs one or more processes to accomplish specific objectives
accounting information systems
consists of interrelated manual and computer parts and uses processes such as collecting, classifying, summarizing, analyzing, and managing data to provide information to users
The overall objective of an accounting information system is to provide info to users
Two key features of the accounting info system
first the inputs are economic events
two the operational model of an accounting info system is critically involved with the user
Accounting Info Systems subsystems
- the financial accounting info system
2. the cost management info system
Financial Accounting System
primarily concerned with giving outputs for external users
Cost Management Information System
concerned with producing outputs for internal users
provides
1. Costing Services, products, and other objects of interest management
2. Planning and control
3. Decision Making
value chain
the set of activities required to design, develop, produce, market, deliver, and provide post sales service for the products and services sold to customers
Cost Accounting Information Systems
cost management subsystem designed to assign costs to individual products and services and other objects of interest to managers
Operational Control Information System
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
Cost
the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future benefit to the organization.
Expenses
Expired costs
Assets
Un-expired costs
Cost objects
anything for which costs are measured and assigned
Activity
basic unit of work performed within an organization
Indirect Costs
costs that cannot be traced easily and accurately to a cost object
Direct Costs
costs that can be traced easily and accurately to a cost object
Traceability
the ability to assign a cost directly to a cost object
Direct Tracing
the process of identifying and assigning costs to a cost object that are specifically or physically associated with the cost object
Drivers
factors that cause changes in resource usage, activity usage, costs, and revenues