Exam 11: Strategic Cost Management

The assignments to suppliers and customers that provide the best cost information needed are called __________ assignments. or

The objective of strategic cost management is to reduce costs while strengthening strategic positions.

The operational activity of moving inventory is classified as a

Which of the following is NOT a trait of a JIT system?

Figure 11-4 the Algonquin Company developed the following budgeted life-cycle income statement for two proposed products. Each product's life cycle is expected to be two years. A 10 percent return on sales is required for new products. Because the proposed products did not have a 10 percent return on sales, the products were going to be dropped. Relative to Product B, Product A requires more research and development costs but fewer resources to market the product. Sixty percent of the research and development costs are traceable to Product A, and 30 percent of the marketing costs are traceable to Product A. Refer to Figure 11-4. If research and development costs and marketing costs are traced to each product, life-cycle income for Product A would be

Lavalier Company developed the following budgeted life-cycle income statement for two proposed products. Each product's life cycle is expected to be two years. A 12 percent return on sales is required for new products. Because the proposed products did not have a 12 percent return on sales, the products were going to be dropped. Relative to Product BB, Product AA requires more research and development costs but fewer resources to market the product. Sixty-five percent of the research and development costs are traceable to Product AA, and 40 percent of the marketing costs are traceable to Product AA. If research and development costs and marketing costs are traced to each product, life-cycle income for Product BB would be

Life-cycle costs are all costs associated with a product during the production viewpoint.

Value-chain analysis is identifying and exploiting internal and external linkages to achieve strong strategic positions.

Target costing provides a method for reducing costs by exploiting customer and supplier linkages.

The stage during which the product loses market acceptance is called the:

Strategic cost management is the identification of strategies to develop a competitive advantage.

Which of the following manufacturing costs is assigned to products in a JIT environment using allocation?

In a JIT environment, many overhead costs are directly traceable to products.

Which of the life-cycle viewpoints is the revenue-oriented viewpoint?

JIT manufacturing differs from traditional manufacturing in all of the following ways EXCEPT

The viewpoint which defines stages of the life cycle by changes in the type of activities performed is called the:

Which viewpoint of the product life-cycle is customer-value oriented?

The operational activity of redesigning products is classified as a

The operational activity of setting up equipment is classified as a

The approach to quality control which attempts to achieve zero defects is called: