Question

Financial Accounting and Cost Management Classify each of the following actions as either being associated with the financial accounting information system (FS) or the cost management information system (CMS): a. Determining the total compensation of the CEO of a public company b. Issuing a quarterly earnings report c. Determining the unit product cost using TDABC d. Calculating the number of units that must be sold to break even e. Preparing a required report for the SEC f. Preparing a sales budget g. Using cost and revenue information to decide whether to keep, or drop, a product line h. Preparing an annual statement of financial position that conforms to generally accepted accounting principles (GAAP) i. Using cost and revenue information to decide whether to invest in a new production system or not j. Reducing costs by improving the overall quality of a product k. Using a debt-equity ratio and liquidity ratios from a balance sheet to assess the likelihood of bankruptcy l. Using a public company's financial statements to decide whether or not to buy its stock

Answer 1

Answer:

Explanation:

A. Determining the total compensation of the CEO of a public company - FS

B. Issuing a quarterly earnings report - FS

C. Determining the unit product cost using TDABC - CMS

D. Calculating the number of units that must be sold to break even -CMS

E. Preparing a required report for the SEC - FS

F. Preparing a sales budget - CMS

G. Using cost and revenue information to decide whether to keep, or drop, a product line- CMS

H. Preparing an annual statement of financial position that conforms to generally accepted accounting principles (GAAP) -FS

I. Using cost and revenue information to decide whether to invest in a new production system or not- CMS

J. Reducing costs by improving the overall quality of a product- CMS

K. Using a debt-equity ratio and liquidity ratios from a balance sheet to assess the likelihood of bankruptcy- FS

L. Using a public company's financial statements to decide whether or not to buy its stock- FS