FUNDAMENTALS OF COST ACCOUNTING
FINAL PAPER COMPLETE QUESTIONS AND
ACCURATE SOLUTIONS STUDY GUIDE
●● Value-added Activities
Answer: are those that customers perceive as adding utility to the goods
or services they purchase
●● Supply Chain
Answer: includes the set of firms and individuals that sells goods and
services to the firm
●● Distribution Chain
Answer: includes the set of firms and individuals that buys and
distributes goods and services from the firms
●● Financial Accounting
Answer: is the field of accounting that reports financial position and
income according to accounting rules
●● Cost Accounting
Answer: is the field of accounting that measures, records, and reports
information about costs
, ●● Nonvalue-added Activities
Answer: activities that do not add value to the goods or services from the
customer's perspective
●● Cost-benefit Analysis
Answer: process of comparing benefits (often measured in savings or
increased profits) with costs associated with a proposed change within
an organization
●● Cost Driver
Answer: a factor that causes, or "drives," costs
●● Differential Costs
Answer: are those that differ among or between alternatives [between
costs that are being compared]
●● Differential Revenues
Answer: are the revenues that change in response to a particular course
of action
●● Responsibility Center
Answer: a specific unit of an organization assigned to a manager who is
held accountable for its operations and resources
FINAL PAPER COMPLETE QUESTIONS AND
ACCURATE SOLUTIONS STUDY GUIDE
●● Value-added Activities
Answer: are those that customers perceive as adding utility to the goods
or services they purchase
●● Supply Chain
Answer: includes the set of firms and individuals that sells goods and
services to the firm
●● Distribution Chain
Answer: includes the set of firms and individuals that buys and
distributes goods and services from the firms
●● Financial Accounting
Answer: is the field of accounting that reports financial position and
income according to accounting rules
●● Cost Accounting
Answer: is the field of accounting that measures, records, and reports
information about costs
, ●● Nonvalue-added Activities
Answer: activities that do not add value to the goods or services from the
customer's perspective
●● Cost-benefit Analysis
Answer: process of comparing benefits (often measured in savings or
increased profits) with costs associated with a proposed change within
an organization
●● Cost Driver
Answer: a factor that causes, or "drives," costs
●● Differential Costs
Answer: are those that differ among or between alternatives [between
costs that are being compared]
●● Differential Revenues
Answer: are the revenues that change in response to a particular course
of action
●● Responsibility Center
Answer: a specific unit of an organization assigned to a manager who is
held accountable for its operations and resources
