Final answer:
The correct answer is D. Preparation of financial statements, as it is not a main focus of cost management information, but rather a part of financial accounting.
Step-by-step explanation:
Cost management information systems are designed to provide comprehensive data that organizations use for a variety of purposes related to managing costs effectively. Typically, these systems focus on areas including strategic management, performance measurement, and planning and decision making. However, the preparation of financial statements is generally not considered a main focus of cost management information as it falls more directly under financial accounting.
Therefore, the correct answer to the student's question is D. Preparation of financial statements, as this is more aligned with the reporting and compliance aspect of financial operations rather than the internal processes that drive cost management decisions.
As part of cost management, internal audit and control functions are necessary to ensure that all financial actions abide by internal policies and external regulations, which significantly impacts cost management initiatives.