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The value chain is the sequence of business activities in which usefulness is added to the products or the servvices within an organization.
T
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The repair of amachines is an example of a nonvalue-adding activity.
T
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The customer's perspective governs wheter an activity adds value to a product service.
T
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Managers eliminate non-value-adding activities that are not essential to an organization.
T
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A cost hierarchy and a bill of activities are tools for the implementation of activity-based costing.
T
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Which one of the four levels of the cost hierarchy would be used by a dress manufacturer that uses activity-based management for sewing seems on a garment?
unit-level activity
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The major objective of the just-in-time operating environment is to
reduce waste and improve quality and productivity
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identify the following activities, performed on a manufactured product, as a value-adding V or nonvalue-adding NV
- NV
- receiving
- storing raw materials
- moving materials
- storing finished goods
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When using backflush costing product costs are first accomulated in the ____________ accouunt.
Cost of Goods Sold
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The breakeven point in the level of activity at which fixed costs are recovered. If fixed costs are $180,000 variable costs are $38 per unit, and the product sells for $70 the breakeven point in sales dollars is $393,750.
T
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Contribution margin is selling price minus unit fixed costs
F
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If direct materials costs are decreased, the breakeven point will decrease
T
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Cost-volume-profit analysis assumes costs and revenues have a close linear approximation.
T
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The high-low method
allows differentation between fixed and variable costs when dealing with mixed costs
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Which of the following is a fixed cost?
personnel manager's salary
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During this past year, a small publishing company sold 60,000 copies of Super Travel paperbacks (its only product) at $5 per book; total fixed costs were $14,000 and total variable costs were $3 per book. What is this company's breakeven point in units
7,000 units
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Contribution margin equals sales minus
variable costs
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Trawest, Inc. has prepared the following data.
62.5 percen, 12.5 percent, adn 25 percent, respectively.
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