A Cost Management System Should Provide Information to

question 12

Multiple Choice

A cost management system should provide information to

• A)all functional areas of the organization.
• B)only the accounting area of the organization.
• C)only the production area of the organization.
• D)organizational managers,but not to staff personnel.

---

Definitions:

Capital Balances

Refers to the amounts recorded in the equity section of a company's balance sheet, representing the funds contributed by owners plus retained earnings.

Income Ratio

A financial metric used to evaluate a company's profitability by comparing its income to another metric, such as sales or assets, to assess efficiency and performance.

Capital Balance

Capital balance represents the amount of money that stakeholders have invested in a company. This can also refer to the amount of equity a company has.

Replacement Cost

The cost to replace an asset with another of similar function and quality in current market conditions.