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Acct 355 exam 3 Questions and answers | Latest 2024/25 RATED A+
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Acct 355 exam 3 Questions and answers | Latest 2024/25 RATED A+
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Acct 355 exam 3 Questions and answers| Latest 2024/25 RATED A+
responsibility center - a part, segment, or subunit of an organization whose manager is ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
accountable for a specified set of activities
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ii Responsibility Accounting - System that measure the activity of responsibility center ii ii ii ii ii ii ii ii ii ii ii ii
ii Four types of centers - Cost, revenue, profit, investment
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ii Profit center - accountable for revenues and costs-plant manager and local stores
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ii Investments centers - Accountable for investment, revenue, cost- ceo ii ii ii ii ii ii ii ii ii ii
ii ROI - Operating Income/Total Assets
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ii RI - Operating earnings - (min acceptable return x invested capital)
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EVA - after tax operating income - (weighted average cost of capital x total capital
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employed)
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Transfer pricing - Amount changed when one part of a company sells to another part of
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that same company -min price vs Max price
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strategic decision making - When companies choose among strategies with the goal of
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selecting the strategy that provides company with measurable assurance of long term
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growth and survival
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Strategic Cost Management - Using cost date to identify and develop strategies that will
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provide competitive advantage
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cost leadership strategy - Providing same or better value to customers at lower cost than
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offered by others- focus on efficiency and limiting waste
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differentiation strategy - Increasing value by providing something a competitor doesn't
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provide- special feature
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ii focusing strategy - Choose a specific market we want compete in
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ii Value Chain - Set of value creating activities from start to finish
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ii Internal linkages - relationships among activities within a firm's value chain.
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