Managerial Accounting: Creating Value in a Dynamic Business Environment 12th Edition by Ronald Hilto
perform its value chain activities at a higher quality level than one of its competitors.
perform at lower quality and higher cost than competitors.
In order for a company to achieve a sustainable competitive advantage it must perform one or more
activities in the value chain at the same quality level as its competitors.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-07 Understand
and explain the value chain concept.
Which of the following would not be part of a value chain for a fast food restaurant?
Buying produce.
Mopping the floor.
Refilling the napkin dispensers.
Hiring new cooks.
All of the choices are a part of the value chain.
All of these activities would be part of a value chain for a fast food restaurant.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-07 Understand
and explain the value chain concept.
65.
Award: 1.00 point
A restaurant’s value chain includes:
supplier development.
upstream contributors.
downstream contributors.
management of inventory.
All of these are included in the value chain.
All of these are included in the value chain.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-07 Understand
and explain the value chain concept.
66.
Award: 1.00 point
Which of the following choices correctly depicts activities that would be included in a manufacturer's
value chain?
Research and Development Marketing Distribution
A. Yes Yes No
B. Yes No Yes
C. Yes Yes Yes
D. No Yes No
E. No Yes Yes
Choice A.
Choice B.
Choice C.
Choice D.
Choice E.
All of these activities would be included in the value chain.
References
Multiple Choice Difficulty: 3 Hard Learning Objective: 01-07 Understand
and explain the value chain concept.
67.
Award: 1.00 point
Strategic cost management is:
I. the process of determining cost drivers.
II. the recognition of the importance of cost relationships among the activities in the value chain.
III. the process of managing cost relationships to the firm’s advantage.
IV. cost-causing factors.
I.
II.
III.
IV.
II. and IV.
Strategic cost management is defined by both II. and IV.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-07 Understand
and explain the value chain concept.
68.
Award: 1.00 point
Which of the preceding activities would likely not be considered part of Forte Clothing Company's
value chain?
Designing a new product line.
Locating and then negotiating terms with a clothing manufacturer.
Marketing an existing product line.
Distributing goods from regional warehouses to local stores.
All of these activities would be an element in the company's value chain.
All of the activities listed are included in the Forte’s value chain.
References
Multiple Choice Difficulty: 3 Hard Learning Objective: 01-07 Understand
and explain the value chain concept.
69.
Award: 1.00 point
In order for a company to achieve a sustainable competitive advantage, it must perform value chain
activities:
I. at the same quality level as competitors, at the same cost.
II. at the same quality level as competitors, but at a lower cost.
III. at a higher quality level than competitors, at a higher cost.
IV. at a higher quality level than competitors, but at no greater cost.
I .
II.
III.
IV.
II and IV.
Both II. and IV. are correct.
References
Multiple Choice Difficulty: 3 Hard Learning Objective: 01-07 Understand
and explain the value chain concept.
70.
Award: 1.00 point
71.
Award: 1.00 point
The process of managing the various activities in the value chain, along with the associated costs, is
commonly known as:
activity-based costing.
strategic cost management.
total quality management.
computer-integrated costing.
sound management practices (SMP).
This is a correct definition for strategic cost management.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-07 Understand
and explain the value chain concept.
The value chain of a manufacturer would tend to include activities related to:
manufacturing.
research and development.
product design.