1. An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into information that is provided to users. TKVE, 2. The two major subsystems of the accounting information system are the financial accounting information system and the cost management accounting information system. Trene 3. The cost management information system is primarily concerned with producing outputs for external users 4. The three broad objectives of financial accounting information systems are to provide information for costing out services and products, planning and control, and decision making. 5. Preparing reports for division managers is an activity associated with the cost management information system. 6. The cost management information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives. 7. The Financial accounting information system provides information for three broad objectives: costing services and products, planning and control, and decision making. 8. The value chain is the set of activities required to design, develop, produce, market, deliver and provide post-sales service for the products and services sold to customers. 9. Cost management information benefits production, marketing, and customer service systems as well as being a crucial part of managerial decision making. 10. An integrated cost management system receives information from and provides information to only 11. Costs can display variable, fixed, or mixed behavior, and it important that they are classified 12. A cost that does not change as output changes is a variable cost, and one that changes is a fixed 13. A cost object is the item for which managers want cost information, so the first step is to determine appropriate cost objects. 14. Fixed costs are costs that, in total, are constant within the relevant range as the level of the 15. Variable costs are defined as costs that, in total, are constant regardless of change in an activity driver