What Is the Cost Management Information System Concerned With

question 238

Multiple Choice

What is the cost management information system 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

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, which can include payments on loans, bonds, or lines of credit.

Return on Common Stockholders' Equity

A measure of profitability that indicates how much profit a company generates with the money shareholders have invested.

Return on Total Assets

A financial ratio that measures a company's profitability in relation to its total assets, indicating how efficiently assets are used to generate profit.

Net Income

The total profit of a business after all expenses, taxes, and costs have been subtracted from total revenues.