Horngren’s Cost Accounting A Managerial Emphasis 17th Global Edition by Srikant M. Datar test bank

d.    transportation costs for shipping products to retail outlets
Answer: 
a.    (4) marketing
b.    (3) production
c.     (6) customer service
d.    (5) distribution
Diff: 3
Objective:  3
AACSB:  Application of knowledge
 
44) Classify each cost item of Ripon Printers given below into one of the business functions of the value chain, either (1) R&D, (2) design of products and processes, (3) production, (4) marketing (including sales), (5) distribution, or (6) customer service.
 
Item:
a.    cost of customer order forms
b.    cost of paper used in manufacture of books
c.     cost of paper used in packing cartons to ship books
d.    cost of paper used in display at national trade show
e.     depreciation of trucks used to transport books to college bookstores
f.     cost of the wood used to manufacture paper
g.    salary of the scientists attempting to find another source of printing ink
h.    cost of designing the book size so that a standard-sized box is filled to capacity
Answer: 
a.    (4) marketing (including sales)
b.    (3) production
c.     (5) distribution
d.    (4) marketing (including sales)
e.     (5) distribution
f.     (3) production
g.    (1) research and development
h.    (2) design of products and processes
Diff: 3
Objective:  3
AACSB:  Application of knowledge
 

 
45) Describe the value chain and how it can help organizations become more effective.
Answer:  A value chain is a sequence of business functions whose objective is to provide a product to a customer or provide an intermediate good or service in a larger value chain. These business functions include R&D, design, production, marketing, distribution, and customer service.
 
An organization can become more effective by focusing on whether each link in the chain adds value from the customer's perspective by focusing on the organization's objectives.
Diff: 2
Objective:  3
AACSB:  Application of knowledge
 
46) Value chain and classification of costs, car company.
General Motors incurs the following costs:
a.  Electricity costs for the plant assembling the Chevrolet Camaro
b.  Transportation costs for shipping the Camaro to dealers
c.  Payment to Shelby Designs for the design of the Camaro.
d.  Salary of an engineer working on the next generation of Camaros
e.  Cost of GM employees' visit to an auto show to demonstrate the Camaro
f.  Testing the Camaro at the GM track
g.  Payment to television network for running Camaro advertisements
h.  Cost of brake pads purchased from outside supplier to be installed on the Camaro
 
Required:
Classify each of the cost items (a-h) into one of the business functions of the value chain.
1)  Research and development
2)  Design of products and processes
3)  Production
4)  Marketing and sales
5)  Distribution
6)  Customer service
Answer: 
a.  3) Production
b.  5) Distribution
c.  2) Design of products and processes
d.  1) Research and development
e.  4) Marketing and sales
f.  2) Design of products and processes
g.  4) Marketing and sales
h.  3) Production
Diff: 3
Objective:  3
AACSB:  Application of knowledge
 

 
Objective 1.4
 
1) Place the five steps in the decision-making process in the correct order:
 
        A = Obtain information
        B = Make decisions by choosing among alternatives
        C = Identify the problem and uncertainties
        D = Implement the decision, evaluate performance, and learn
        E = Make predictions about the future
 
A) C D B E A
B) E D A B C
C) C A E B D
D) A E B D C
Answer:  C
Diff: 2
Objective:  4
AACSB:  Analytical thinking
 
2) Which of the following is true of planning in decision making?
A) It helps an organization to select goals and strategies.
B) It improves the quality of products.