ACC 3200 Exam 1 Review Questions & Answers 2024/2025
Identify parts of the value chain and describe the purpose of value accounting and who determines value - ANSWERS-set of activities required to design develop, produce, market, distribute, and service a product
-customer determines the valu...
Identify parts of the value chain and describe the purpose of value accounting and who determines
value - ANSWERS-set of activities required to design develop, produce, market, distribute, and service a
product
-customer determines the value and can be increased by increasing speed of delivery and response
-purpose - increase production efficiency so that a company can deliver max value for less cost
Identify major factors leading to the globalization of manufacturing and service - ANSWERSvastly
improved transportation and communication system
Describe competitive advantage and what companies must do to achieve it - ANSWERS-creating better
customer value for the same or lower cost than other competitors or equivalent value for lower cost
than competitors
-more relevant and timely cost information for advantage
Describe sustainable development - ANSWERSDevelopment that meets the needs of the present without
compromising the ability of future generations to meet their own needs.
Classify costs as Product vs. Period - ANSWERS-product: direct materials, direct labor (factory employee),
and overhead (plant and factory - IL and IM)
-delivery = period
-store = period
-office supplies = period
Define and identify the differences between costs, expenses, and losses - ANSWERS-cost: cash or cash
equivalent value sacrificed for goods or services that are expected to bring a current or future benefit to
the organization
-expenses: expired cost
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