Describe a Cost Management Information System, Its Objectives, and Major

question 159

Essay

Describe a cost management information system, its objectives, and major subsystems.
The cost management information system is an accounting information subsystem that is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives.
The objectives are as follows:

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Definitions:

Units-Of-Output Depreciation

A depreciation method that allocates an asset's cost based on its usage or production levels, rather than simply the passage of time.

Depreciable Cost

The total cost of a tangible asset that is subject to depreciation, excluding salvage value, to allocate over the asset's useful life.

Depreciation Rate

The percentage rate at which an asset is depreciated across its useful life, affecting the value of the asset on the balance sheet over time.

Straight-Line Method

A method of calculating depreciation by dividing the cost of an asset, minus its salvage value, by its useful life.