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Costs necessary to market and distribute a product or service are often referred to as order- __________ and order- __________ costs.

A subsystem of the accounting information system designed to satisfy costing, controlling and decision making objectives is called the __________ system.

Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information relating to the two products is as follows: ​ Model F Model G Units produced 24,000 30,000 Machine hours 7,500 8,500 Direct labor hours 8,000 12,000 Material handling (number of moves) 4,000 6,000 Setups 5,000 7,000 Purchase orders 30 40 Inspections 10,000 14,000 Product line variations 8 12 ​ The following overhead costs are reported for the following activities of the production process: Material handling $ 40,000 Labor-related overhead 120,000 Setups 60,000 Product design 100,000 Batch inspections 120,000 Central purchasing 70,000 ​ Jones manufacturing has used activity based costing to assign costs to Models F and G as given in the table below: Activity Cost Pool Driver Pool Rate Model F Activity Model F Cost Model G Activity Model G Cost Total Material handling $40,000 10,000 $4 4,000 $16,000 6,000 $24,000 $40,000 Labor related overhead $120,000 20,000 $6 8,000 $48,000 12,000 $72,000 $120,000 Setups $60,000 12,000 $5 5,000 $25,000 7,000 $35,000 $60,000 Product design $100,000 20 $5,000 8 $40,000 12 $60,000 $100,000 Batch inspections $120,000 24,000 $5 10,000 $50,000 14,000 $70,000 $120,000 Central purchasing $70,000 70 $1,000 30 $30,000 40 $40,000 $70,000 total ​ ​ ​ ​ $209,000 ​ $301,000 $510,000 ​ Appleby Manufacturing wants to implement an approximately relevant ABC system by using the two most expensive activities for cost assignment. ​ Using ABC as the benchmark, what is the percentage error in the cost assigned to Model G using the approximately relevant ABC approach? (round to 4 decimal places)

Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of some underlying “true cost”.

Before opting to use managerial judgment, management should make sure that each cost is predominantly fixed or variable.

Enterprise resource planning (ERP) software has the objective of providing an integrated system capability and is able to run all the operations of a company.

Factors that have led to a global market for manufacturing and service firms are

An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into information that is provided to users.

Cost management systems are made up of two subsystems: the __________ accounting system and the __________ control system.

Evaluating the performance of a segment of the company is an example of