90.
San Juan, Inc. is considering two alternatives: A and B. The costs associated with the
alternatives are listed below:
Alternative A
Alternative B
Material costs
$35,000
$57,000
Processing costs
36,000
57,000
Building costs
12,000
28,000
Equipment rental
19,000
19,000
91.
Two alternatives, identified X and Y, are under consideration at Hayden Corporation. Costs
associated with the alternatives are listed below.
Alternative X
Alternative Y
Material costs
$44,000
$56,000
Processing costs
37,000
59,000
Building costs
14,000
14,000
Equipment rental
11,000
11,000
Are the materials costs and processing costs differential in the choice between
alternatives X and Y? (Ignore the building costs and equipment rental in this question.)
92.
Two alternatives, identified X and Y, are under consideration at Hayden Corporation. Costs
associated with the alternatives are listed below.
Alternative X
Alternative Y
Material costs
$44,000
$56,000
Processing costs
37,000
59,000
Building costs
14,000
14,000
Equipment rental
11,000
11,000
What is the differential cost of Alternative Y over Alternative X?
93.
94.
95.
Megan Towe is putting together a training session about value chain components. Which
of the following would be a good example of a cost for the component of research and
development?
96.
An Enterprise Resource Planning System can best be described as
97.
The approaches and activities of managers in short-run and long-run planning and control
decisions that increase value for customers and lower costs of products and services are
known as
98.
R&D, production, and customer service are business functions that are all included as
part
99.
All of the following words describe benchmarking except:
100.
All of the following are examples of total quality management practices except:
101.
Which area(s) of a business can be improved by using a just–in-time (JIT) system?
102.
Examples of the controller’s functions include all except:
103.
Cost accounting is an integral part of the ________ function in an organization.
104.
All of the following actions enhance the new focus on making cost accounting information
more relevant in helping a firm achieve strategic goals except:
105.
All of the following are examples of total quality management practices except:
106.
107.
According to the IMA Code of Ethics, what should a management accountant do if a
significant ethical situation can’t be resolved?
108.
With the enactment of the Sarbanes-Oxley Act of 2002, all public companies are now
required by the SEC to disclose whether or not the company has
109.
The Sarbanes Oxley Act of 2002 requires an effective internal control system for publicly
owned firms. Therefore, with regards to strategic investment decisions, it is important that
management consider including
110.
Where there is a lack of good performance measures, it is difficult to motivate managers
by using
1-76
111.
Essay Questions
1-77
112.
Carley Inc. incurs many types of costs in its operations. Place the number of the
appropriate stage in the value chain in Column 2 in the blank next to each cost in column
1.
Cost
Stage in the
Value Chain
Transportation costs to
ship vans to customers
1. Customer
Service
Labor costs for factory
workers
2. Distribution
Overtime costs for
scientists working on
new engine technology
3. Research &
Development
Utilities cost for the
design testing center
4. Marketing
Costs to survey
customers about their
satisfaction
5. Production
Costs to sponsor a
sporting event
6. Design
Transportation costs to ship
vans to customers
1. Customer
Labor costs for factory
2. Distribution
113.
SuperMax is an integrated provider of genetically engineered corn. Many types of costs
are incurred in its operations. Place the number of the appropriate stage in the value chain
in Column 2 in the blank next to each cost in column 1.
Cost
Stage in the
Value Chain
Warehouse costs to
store seed awaiting
shipment to customers
1. Customer
Service
Utility costs for seed
mill
2. Distribution
Equipment costs in
genetics laboratory
3. Research &
Development
Labor costs to run help
line call center
4. Marketing
Costs to prepare
advertising campaign in
national agriculture
magazine
5. Production
Costs to contract with
growers to provide seed
6. Purchasing
Equipment costs in genetics
laboratory
3. Research &
Development
call center
