Accounting Information Systems Has Links with Other Areas of Accounting

question 45

Multiple Choice

Accounting information systems has links with other areas of accounting study, including financial accounting.Which of the following combines an example of an AIS output with information you would expect to find in the output?

• A)Income statement, net sales broken down by product line
• B)Journal entries, accounts to debit and credit
• C)Balance sheet, listing of current asset accounts with their balances
• D)All of these

Recognize the advantages and disadvantages of decentralization.

Distinguish between indirect and direct operating expenses.

Understand the principles of responsibility accounting and its role in organizational control.

Differentiate among cost centers, profit centers, and investment centers based on their scope of responsibility.

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Definitions:

Total Variable Cost

The total of expenses that vary directly with the volume of production or sales, such as materials and labor.

Average Total Cost

The sum of all production expenses, both fixed and variable, divided by the total quantity of units manufactured.

Average Fixed Cost

The fixed cost per unit produced, calculated by dividing total fixed costs by the number of units produced.

Average Variable Cost

The variable cost per unit, calculated by dividing total variable costs by the quantity of units produced.