An AIS Provides Value by

question 53

Multiple Choice

An AIS provides value by

• A)improving products or services through information that increases quality and reduces costs.
• B)providing timely and reliable information to decision makers.
• C)creating new products.
• D)both A and B

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Definitions:

Contribution Margin

The amount by which a product's sales revenue exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.

Product Costs

The costs directly connected to the creation of a product, including materials, labor, and manufacturing overhead.

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling and administrative costs.

Direct Manufacturing Cost

Expenses directly related to the production of goods, including labor and materials.