Choose the letter of the correct answer to the statements.

A system is defined as a set of (1) [a. COMPLICATED INTERACTION], [b. INTERRELATED PARTS], [c. INDEPENDENT ASSOCIATIONS] that performs one or more (2) [a. ANALYSES], [b. PROCESSES], [c. ROUTINGS] to accomplish specific objectives. An information system has the specific objective of supplying information in the company to people that need it. A(n) (3) [a. ACCOUNTING], [b. MARKETING], [c. PRODUCTION] information system is one that consists of interrelated parts and uses processes such as (4) [a. ANALYZING, CLASSIFYING, COLLECTING, SUMMARIZING, AND MANAGING DATA], [b. ADVERTISING AND REPAIRING] to provide information to users.

In an operational accounting information system, (5)[a. ACCOUNTANTS],[b. COMPUTER],[c. PROCESSES] transform inputs into (economic events, outputs) which are, in turn, used by individuals for decision making, evaluation, and monitoring. The accounting information system can be divided into two major subsystems: the financial accounting information system and the cost management information system. The financial accounting information system is primarily concerned with producing outputs for (6) [a. INTERNAL USERS], [b. EXTERNAL USERS] and the cost management information system is primarily concerned with (7) [a. INTERNAL USERS], [b. EXTERNAL USERS].

The (8) [a. FINANCIAL ACCOUNTING], [b. COST MANAGEMENT] information system has the following broad objectives: (9) [a. FOLLOWING RULES, COMPLYING WITH REGULATORY MEASURES], [b. PLANNING AND CONTROL, COSTING SERVICES, PRODUCTS, AND OTHER PRODUCTS OF INTEREST TO MANAGEMENT, DECISION MAKING]. The cost management system can be divided into major subsystems: the cost accounting information system and the operational control information system. The cost management system has the objective of (10) [a. ASSIGNING COSTS TO], [b. REDUCING COSTS TO] individual products and services and other objects of interest. The operational control system has the objective of planning and controlling activities to ensure that they are performed efficiently and provide value to customers and owners.

Apply the Concepts

a. Depreciation on drills used to produce cabinets is an example of (11) [a. INTERRELATED PART], [b. INPUT], [c. OUTPUT], [d. PROCESS].

b. Assigning the cost of drill depreciation to cabinets is an example of (12)[a. INTERRELATED PART], [b. INPUT], [c. OUTPUT], [d. PROCESS].

c. A report listing the cost of producing cabinets is an example of (13)[a. INTERRELATED PART], [b. INPUT], [c. OUTPUT], [d. PROCESS].

d. The printer used to print the cost report for cabinets is an example of (14)[a. INTERRELATED PART], [b. INPUT], [c. OUTPUT], [d. PROCESS].