361-Chapter-4-MC-Solutions

Chapter4—Activity-BasedManagementandActivity-BasedCostingMULTIPLECHOICE1.Anobjectiveofactivity-basedmanagementistoa.eliminatethemajorityofcentralizedactivitiesinanorganization.b.reduceoreliminatenon-value-addedactivitiesincurredtomakeaproductorprovideaservice.c.instituteresponsibilityaccountingsystemsindecentralizedorganizations.d.alloftheaboveANS:BPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling2.GlobalcompetitionhasforcedAmericanindustrytoa.seekincreasedgovernmentalregulation.b.improveproductqualityandcustomerservice.c.narrowproductlines.d.decreaseitssocialresponsibility.ANS:BPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling3.Leadtimeminusproductiontimeisequaltoa.idletime.b.storagetime.c.non-value-addedtime.d.value-addedtime.ANS:CPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling4.Whichofthefollowingstatementsaboutbusiness-value-addedactivities(BVAs)istrue?a.BVAsreflectthesameprocessesinallorganizations.b.AprocessmapwillnotreflectBVAsbecausesuchactivitiesarenotessentialtoprocessperformance.c.BVAsareactuallyvalue-addedactivitiesofanorganizationthatrelatetoadministrativeprocesses.d.ItisimpossibletoeliminateallBVAsinanorganization.ANS:DPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModelingChapter425.Inthepharmaceuticalorfoodindustries,qualitycontrolinspectionswouldmostlikelybeviewedasa.non-value-addedactivities.b.business-value-addedactivities.c.value-added-activities.d.process-efficiencyactivities.ANS:CPTS:1DIF:DifficultOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling6.Thesumofthenon-value-addedtimeandthevalue-addedtimeequalsa.inspectiontime.b.productiontime.c.theproductlifecycle.d.cycletime.ANS:DPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling7.Theamountoftimebetweenthedevelopmentandtheproductionofaproductisa.theproductlifecycle.b.leadtime.c.productiontime.d.value-addedtime.ANS:BPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling8.ForaCPAfirm,howwouldthewagesofstaffauditorsbeclassified?DirectCostsValue-AddedCostsa.YesNob.NoYesc.YesYesd.NoNoANS:CPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling9.ForaCPAfirm,howwouldthecostsofcontinuingeducationforauditmanagersbeclassified?DirectCostsValue-AddedCostsa.YesNob.NoChapter43Yesc.YesYesd.NoNoANS:DPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling10.Foracompanythatmanufacturescandy,howwouldthecostsofproductinspectionbeclassified?DirectCostsValue-AddedCostsa.YesNob.NoYesc.YesYesd.NoNoANS:DPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling11.Foracompanythatmanufacturescandy,howwouldthecostofsugarbeclassified?DirectCostsValue-AddedCostsa.YesNob.NoYesc.YesYesd.NoNoANS:CPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling12.Whenafirmredesignsaproducttoreducethenumberofcomponentparts,thefirmisa.increasingconsumervalue.b.increasingthevalueaddedtotheproduct.c.decreasingproductvariety.d.decreasingnon-value-addedcosts.ANS:DPTS:1DIF:ModerateOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling13.Whichofthefollowingaddcustomervalue?Chapter44a.setuptimeb.storagetimec.idletimed.processingtimeANS:DPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModelingChapter4514.Non-value-addedactivitiesthatarenecessarytobusinesses,butnotcoststhatcustomersarewillingtopayforareknownasa.business-value-addedactivities.b.long-termvariableactivities.c.short-termvariableactivities.d.superiorbusinessactivities.ANS:APTS:1DIF:ModerateOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling15.Whichofthefollowingwouldnotbeconsideredavalue-addedactivityinthepreparationofataxreturn?a.printingacopyofthereturnfortheclientb.printingacopyofthereturnfortheIRSc.installingtaxsoftwared.checkingforaccuracyANS:CPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling16.Whichofthefollowingisconsideredavalue-addedactivity?IdletimeInspectiontimeTransfertimea.yesyesnob.nononoc.yesnoyesd.noyesyesANS:BPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling17.Aprocessmapa.shouldindicateonlyvalue-addedactivities.b.isalsoknownasadetailedflowchart.c.shouldindicateonlythosesteps/processesthatareobviousintheproductionofgoods/services.d.isalsoknownasavaluechart.ANS:BPTS:1DIF:EasyOBJ:4-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:DecisionModeling18.Avaluechartindicatesa.allstepsinaprocessandthetimeittakesforthemtobecompleted.b.thevalue-addedstepsinaprocessandthetimeittakesforthemtobecompleted.c.thetimeandcostofallvalue-addedstepsinaprocess.d.thetimeandcost