What Is the Main Difference Between an IT System and an MIS

question 41

Essay

What is the main difference between an IT system and an MIS system? Provide an example of how an MIS professional could contribute to a technology-related business decision.

Understand the principles of inventory costing methods including FIFO, LIFO, and weighted average.

Calculate cost of goods sold and ending inventory using different inventory costing methods.

Identify the impacts of choosing different inventory valuation methods on financial statements.

Understand and calculate the effects of inventory transactions on the cost per unit using the moving average method.

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Definitions:

Direct Materials Price Variance

The difference between the actual cost of materials used in production and the expected (standard) cost, indicating how effectively a company controls its raw material expenses.

Standard Labor Hours

The anticipated amount of time required to produce a unit of output under normal conditions, used in budgeting and variance analysis.

Direct Labor Time Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.

Actual Costs

The real costs incurred corresponding to specific operations or transactions, as opposed to estimated or budgeted costs.