Horngren’s Cost Accounting A Managerial Emphasis 17th Global Edition by Srikant M. Datar test bank
Answer: FALSE
Explanation: Management accounting information helps managers calculate a target cost for a product by subtracting from the target price the operating income per unit of product that the company wants to earn.
Diff: 2
Objective: 2
AACSB: Analytical thinking
28) Customer relationship management initiatives use technology to coordinate all customer-facing activities (such as marketing, sales calls, distribution, and after-sales support) and the design and production activities necessary to get products to customers.
Answer: TRUE
Diff: 2
Objective: 3
AACSB: Analytical thinking
29) The supply chain describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers.
Answer: TRUE
Diff: 2
Objective: 3
AACSB: Analytical thinking
30) The supply chain always occurs within a single organization.
Answer: FALSE
Explanation: The supply chain can include organizations external to a single organization.
Diff: 1
Objective: 3
AACSB: Analytical thinking
31) Distribution refers to promoting and selling products or services to customers or prospective customers.
Answer: FALSE
Explanation: Marketing refers to promoting and selling products or services to customers or prospective customers.
Diff: 1
Objective: 3
AACSB: Analytical thinking
32) The design of products, services, and processes component of the supply chain refers to the detailed planning, engineering, and testing of products and processes.
Answer: TRUE
Diff: 2
Objective: 3
AACSB: Analytical thinking
33) Management accountants might provide information on decisions on whether to buy a product from outside or manufacture it in-house.
Answer: TRUE
Diff: 1
Objective: 3
AACSB: Analytical thinking
34) The parts of the value chain associated with producing and delivering a product or service–production and distribution – are referred to as the supply chain.
Answer: TRUE
Diff: 2
Objective: 3
AACSB: Analytical thinking
35) Value chain refers to its value to the employee.
Answer: FALSE
Explanation: Value chain refers to its value to the customer.
Diff: 1
Objective: 3
AACSB: Analytical thinking
36) Managers track the costs incurred in each value-chain category is to reduce costs and to improve efficiency.
Answer: TRUE
Diff: 1
Objective: 3
AACSB: Analytical thinking
37) Competitive information serves as a benchmark that managers use to continuously improve their operations.
Answer: TRUE
Diff: 1
Objective: 3
AACSB: Analytical thinking
38) Increased global competition is placing pressure on companies to reduce costs.
Answer: TRUE
Diff: 1
Objective: 3
AACSB: Analytical thinking
39) The increasing pace of technological information has resulted in longer product life cycles.
Answer: FALSE
Explanation: The increasing pace of technological information has resulted in shorter product life cycles.
Diff: 2
Objective: 3
AACSB: Application of knowledge
40) Managers rely on management accounting information to evaluate alternative investment and R&D decisions.
Answer: TRUE
Diff: 1
Objective: 3
AACSB: Analytical thinking
41) In analyzing the value chain of a large manufacturer, a management accountant would become familiar with the Research and Development function by examining the activities of planning, engineering and testing of products and processes.
Answer: FALSE
Diff: 1
Objective: 3
AACSB: Analytical thinking
42) What are the four business functions and in the order that they appear along the value chain?
Answer: Design
Production
Marketing
Customer service
Diff: 2
Objective: 3
AACSB: Analytical thinking
43) Classify each cost item into one of the business functions of the value chain, either (1) R&D, (2) design, (3) production, (4) marketing, (5) distribution, or (6) customer service.
Item:
a. cost of samples mailed to promote sales of a new product
b. labor cost of workers in the manufacturing plant
c. bonus paid to a person with a 90% satisfaction rating in handling customers with complaints