Preparing Reports for Division Managers Is an Activity Associated with the Cost

question 133

True/False

Preparing reports for division managers is an activity associated with the cost management information system.

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Definitions:

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks for measuring actual performance and cost control.

Cost System

A method of accumulating, assigning, and absorbing costs in an organization, used for financial reporting and decision-making.

Raw Material

The basic material from which a product is made, often used in manufacturing or production processes.

Pounds

A unit of weight commonly used in the British, United States customary and other systems of measurement.