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CHAPTER 1 INTRODUCTION: THE ROLE, HISTORY, AND DIRECTION OF MANAGEMENT ACCOUNTING QUESTIONS FOR WRITING AND DISCUSSION 1. A management accounting information system is an information system that produces outputs using inputs and processes needed to satisfy specific managerial objectives. 2. The inputs of a management accounting information system are economic events. The processes transform the inputs into outputs and are such things as collecting, measuring, storing, analyzing, reporting, and managing. Typical outputs include special reports, product costs, customer costs, performance reports, budgets, and personal communication. 3. The three objectives of a management accounting information system are as follows: To provide information …show more content…

It is important because it is the heart of the contemporary management accounting system, offering increased accuracy in product costing (through the use of activity-based costing) and the ability to evaluate and control activities (through process value analysis). Customer value is the difference between customer realization (what a customer receives) and customer sacrifice (what a customer gives up). Focusing on customer value forces managers to consider the entire set of value-chain activities, including what happens after a product is sold. This creates a demand for a broader set of information than that found in a traditional system. The internal value chain is the set of activities required to design, develop, produce, market, distribute, and service a product (the product can be a service). To increase customer value, managers must assess the effect each activity in the chain has on customer value, keeping those that add value and eliminating those that do not. Industrial value chain is the linked set of value-creating activities from raw materials through the end-use customer. Understanding the industrial value chain is important because it enables a manager to identify the important internal and external linkages and use these linkages to create a competitive advantage. Supply chain management is concerned with managing material flows starting with suppliers and upstream suppliers, moving

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