CHAPTER 1: INTRODUCTION TO COST MANAGEMENT 1. An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into information that is provided to users. a. True b. False ANSWER: True 2. The two major subsystems of the accounting information system are the financial accounting information system and the cost management accounting information system. a. True b. False ANSWER: True 3. The cost management information system is primarily concerned with producing outputs for external users. a. True b. False ANSWER: False 4. The three broad objectives of financial accounting information systems are to provide information for costing out services and products, planning and control, and decision making. a. True b. False ANSWER: False 5. Preparing reports for division managers is an activity associated with the cost management information system. a. True b. False ANSWER: True 6. The cost management