Cost Accounting Information System

The following items are associated with a cost accounting information system:

Required:

1. Select the appropriate categories for each of the following items:

a. Usage of direct materials __________________
b. Assignment of direct materials cost to each product ___________________
c. Direct labor cost incurrence _________________
d. Depreciation on production equipment ___________________
e. Cost accounting personnel __________________
f. Submission of a bid, using product cost plus 25 percent ___________________
g. Power cost incurrence _______________________
h. Materials handling cost incurrence _____________________
i. Computer _______________________
j. Assignment of direct labor costs to products _______________________
k. Costing out of products ____________________
l. Decision to continue making a part rather than buying it _______________________
m. Printer _____________________
n. Report detailing individual product costs ______________________
o. Assignment of overhead costs to individual products _____________________

2. Select the appropriate items under the following categories to form an operational model that illustrates the cost accounting information systemwith the preceding items used as examples for each component of the model.

Inputs:	Processes:	Output:
____________	____________	________
____________ ____________ ____________ ____________

3. Based on your operational model, identify which product cost definition is being used: value-chain, operating, or product (manufacturing).

__________________