66.
Which part of the value chain is outside the firm?
67.
68.
Which of the following statements concerning the value chain is false?
69.
Which of the following could be considered part of the value chain in a service firm?
70.
Place the four components in the order they appear along the value chain: A = Customer
service; B = Design; C = Distribution; and D = Production.
71.
Managers evaluate value-added activities to determine how they contribute to the final
product’s
72.
73.
Financial accounting
74.
The individual who would most likely use only financial accounting information in making
decisions is a
75.
The financial accounting system is the primary source of information for
76.
77.
At the middle management level, where managers supervise work and make operating
decisions, cost information highlights
78.
Financial accounting provides a historical perspective, while cost accounting emphasizes
79.
The concept of considering both the costs and benefits of a proposal is known as:
80.
Department managers at Boswell Department Store are allowed considerable discretion in
both sourcing and pricing of products, based on local tastes and competition, as well as
being responsible for departmental staffing. Based on the concept of the responsibility
center, which of the following would not be a performance measure that would be useful
in evaluating the performance of departmental managers at the stores?
81.
Snuggle Toys, Inc. had the following summarized results for the month ending July 31:
Actual
Budget
Revenues
$60,000
$52,000
Costs
53,600
45,600
Operating profits
$6,400
$6,400
As the cost accountant, which single note to the above financial results is most
appropriate in the report to management?
82.
CraftMaster Corporation purchased a machine 7 years ago for $339,000 when it launched
product X05K. Unfortunately, this machine has broken down and cannot be repaired. The
machine could be replaced by a new model 360 machine costing $353,000 or by a new
model 280 machine costing $332,000. Management has decided to buy the model 280
machine. It has less capacity than the model 360 machine, but its capacity is sufficient to
continue making product X05K. Management also considered, but rejected, the alternative
of dropping product X05K and not replacing the old machine. If that were done, the
$332,000 invested in the new machine could instead have been invested in a project that
would have returned a total of $426,000. In making the decision to buy the model 280
machine rather than the model 360 machine, the differential cost was:
83.
When comparing activity-based costing with conventional costing methods, which of the
following is the key benefit of the method?
84.
Geno’s Body Shop had sales revenues and operating costs in 2016 of $650,000 and
$525,000, respectively. In 2017, Geno’s plans to expand the services it provides to
customers to include detailing services. Revenues are expected to increase by $85,000
and operating costs by $50,000 as a result of this expansion. Assuming that there are no
changes to the existing body shop business, operating profits would be expected to
increase during 2017 by
85.
Geno’s Body Shop had sales revenues and operating costs in 2016 of $650,000 and
$525,000, respectively. In 2017, Geno’s plans to expand the services it provides to
customers to include detailing services. Revenues are expected to increase by $85,000
and operating costs by $50,000 as a result of this expansion. Assuming that there are no
changes to the existing body shop business, what is the amount of operating profits that
are expected be earned in 2017?
86.
The goals and objectives of establishing budgeting in an organization include all of the
following except:
87.
88.
89.
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
Are the materials costs and processing costs differential in the choice between
alternatives A and B? (Ignore the building costs and equipment rental in this question.)