The value chain is the sequence of business activities in which usefulness is added to the products or the servvices within an organization.
The repair of amachines is an example of a nonvalue-adding activity.
The customer's perspective governs wheter an activity adds value to a product service.
Managers eliminate non-value-adding activities that are not essential to an organization.
A cost hierarchy and a bill of activities are tools for the implementation of activity-based costing.
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?
The major objective of the just-in-time operating environment is to
reduce waste and improve quality and productivity
identify the following activities, performed on a manufactured product, as a value-adding V or nonvalue-adding NV
storing raw materials
storing finished goods
When using backflush costing product costs are first accomulated in the ____________ accouunt.
Cost of Goods Sold
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.
Contribution margin is selling price minus unit fixed costs
If direct materials costs are decreased, the breakeven point will decrease
Cost-volume-profit analysis assumes costs and revenues have a close linear approximation.
The high-low method
allows differentation between fixed and variable costs when dealing with mixed costs
Which of the following is a fixed cost?
personnel manager's salary
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