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

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

Required:

1. Classify the preceding items into one of the following categories:

a. Interrelated parts

b. Processes

c. Objectives

d. Inputs

e. Outputs

f. User actions

2. Draw an operational model that illustrates the cost accounting information system—with the preceding items used as examples for each component of the model.

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