The Cost Management Information System Is Concerned with

question 96

Multiple Choice

The cost management information system is concerned with

• A)reporting financial information according to GAAP.
• B)providing cost information that is used in planning, control, and decision-making.
• C)reporting to external users.
• D)providing financial information to investors.

---

Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.

Cost Per Equivalent Unit

A measure in process costing that calculates the cost assigned to a unit, considering the stage of completion.

Processing Department

A division within a manufacturing facility where a specific type of process or a stage of production is carried out.

Work In Process Inventory

Goods that are in the production process but are not yet completed.