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Acct 355 exam 3 questions and answers complete solution 100% correct 2024/2025
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Acct 355 exam 3 questions and answers complete solution 100% correct 2024/2025
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Acct 355 exam 3responsibility center
a part, segment, or subunit of an organization whose manager is accountable for a specified set of
activities
Responsibility Accounting
System that measure the activity of responsibility center
Four types of centers
Cost, revenue, profit, investment
Profit center
accountable for revenues and costs-plant manager and local stores
Investments centers
Accountable for investment, revenue, cost- ceo
ROI
Operating Income/Total Assets
RI
Operating earnings - (min acceptable return x invested capital)
EVA
after tax operating income - (weighted average cost of capital x total capital employed)
Transfer pricing
Amount changed when one part of a company sells to another part of that same company -min price vs
Max price
strategic decision making
When companies choose among strategies with the goal of selecting the strategy that provides company
with measurable assurance of long term growth and survival
Strategic Cost Management
Using cost date to identify and develop strategies that will provide competitive advantage
cost leadership strategy
, Providing same or better value to customers at lower cost than offered by others- focus on efficiency and
limiting waste
differentiation strategy
Increasing value by providing something a competitor doesn't provide- special feature
focusing strategy
Choose a specific market we want compete in
Value Chain
Set of value creating activities from start to finish
Internal linkages
relationships among activities within a firm's value chain.
external linkages
relationship of a firm's value-chain activities that are performed with its suppliers and customers
Structural activities
Determined the underlying economic structure of organization
executional activities
Define the processes of an organization
operational activities
Day to day
Product life cycle
Time that the product exists from beginning to end
Revenue producing life
The time a product generates revenue for a company
Consumable life
Length of time that a product serves the needs of a customer
Marketing viewpoint
Sales pattern
Production viewpoint
Costs
Consumable life-cycle viewpoint
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