Question 1

The only function in the value chain where accountants are of any importance is the production function.

Accepted Answer

Accountants are important in multiple functions of the value chain, including the marketing function, the procurement function, and the finance function in addition to the production function. They play a crucial role in ensuring accurate financial reporting, budgeting, cost analysis, and performance measurement throughout the value chain.

Question 2

A telephone hotline is established for customers to call with questions about a new electronic device.This is an example of the ________ function in the ________.

Accepted Answer

The creation of a telephone hotline for customers is an example of the customer service function in the value chain. The hotline is designed to provide post-sale support, addressing concerns and issues that customers may have with the product after purchasing. This helps to ensure customer satisfaction and loyalty, which can lead to increased sales and positive word-of-mouth promotion.

Question 3

Distribution is the function of the value chain that involves ________.

Accepted Answer

Distribution involves the delivery of products or services to the customer through various channels such as direct selling, retailing, e-commerce, or wholesalers. This function plays a crucial role in ensuring that goods or services reach the target market efficiently and effectively.

Question 4

According to the Financial Executives Institute,a function of the controller is ________.

Accepted Answer

The Financial Executives Institute lists reporting and interpreting financial information as a key function of the controller, making option D the best choice. Option A (investments) and option C (provision of capital) are typically handled by other departments or executives within a company, while option B (short-term financing) may fall under the purview of the controller but is not specifically listed as a key function by the FEI.

Question 5

Process engineers at Starbucks investigate methods to reduce the time to roast coffee beans and to better preserve their flavor.This is an example of the ________ or the ________ functions of the value chain.

Accepted Answer

The investigation into methods to improve roasting time and flavor preservation falls under research and development, as it involves creating new methods or improving existing ones. It also relates to the design of products, services, or processes, as it involves planning and optimizing the roasting process.

Question 6

The value chain refers to the various stages through which a product passes.

Accepted Answer

The answer of The value chain refers to the various...

Question 7

An example of a staff department at a clothing manufacturer is the ________.

Accepted Answer

A staff department is a department that supports the primary functions of the organization. The pressing, cutting, and sewing departments are all part of the primary functions of a clothing manufacturer, so they would not be considered staff departments. The maintenance department, however, supports the manufacturing process by ensuring that equipment is functioning properly and facilities are maintained, making it a staff department.

Question 8

Research and development is the function of a value chain that involves ________.

Accepted Answer

Research and development primarily focuses on the generation of ideas related to new products, services, or processes, which is essential for innovation and staying competitive in the market.

Question 9

The ________ is mainly concerned with the company's operating matters whereas the ________ is mainly concerned with the company's financial matters.

Accepted Answer

The controller is primarily responsible for the company's financial matters, such as accounting and financial reporting, while the treasurer is mainly responsible for the company's operating matters, such as managing cash flow and investments. Therefore, option B, which implies that the controller is mainly concerned with financial matters, and the treasurer is mainly concerned with operating matters, is the best choice. The other options either have incorrect or incomplete information.

Question 10

Marketing is the function of the value chain that involves ________.

Accepted Answer

Marketing involves communicating the features and value of products or services to potential customers, allowing them to learn about and become interested in the offering. While delivery and customer service may be part of the overall marketing strategy, they are not the primary focus. Selling activities are a component of marketing, but marketing involves more than just selling - it includes the broader process of creating, communicating, and delivering value to customers.

Question 11

Accountants support only some of the value-chain functions.

Accepted Answer

Accountants support various functions in the value chain, including financial management, cost accounting, budgeting, and forecasting, among others. They are involved in both upstream and downstream activities, ensuring that financial transactions and records are properly documented and accounted for. Therefore, they play an important role in the entire value chain, not just some functions.

Question 12

Accountants do NOT support the ________ function of the value chain.

Accepted Answer

Accountants support all functions of the value chain, including research and development, design of products, services or processes, and customer service, by providing financial information and analysis.

Question 13

The management accountant prepares the following performance report for a company's first year of operations:
  Required: 
A)Compute variances for each line item on the income statement.Also indicate if the variances are favorable or unfavorable.
B)Using the management-by-exception approach,which variances should be investigated further?

Accepted Answer

The answer of The management accountant prepares the following performance...

Question 14

Line managers are directly involved with making and selling the organization's products or services.

Accepted Answer

Line managers have direct operational responsibilities and are involved in the production, marketing, and selling of an organization's products or services. They are responsible for managing the day-to-day activities of the organization and ensuring that the goals and objectives are met.

Question 15

The detailed design and engineering of products,services or processes is called the ________ function in the value chain.

Accepted Answer

The detailed design and engineering of products, services, or processes is specifically referred to as the "design of products, services, or processes" function in the value chain.

Question 16

At a clothing manufacturer,which department head has line authority?

Accepted Answer

Line authority is the authority to make decisions and issue orders that must be followed by subordinates in the chain of command. In a clothing manufacturing company, the head of the clothing assembly department is responsible for overseeing the workers who actually assemble the clothing, and has the line authority to make decisions about how the work should be performed, as well as issue orders to subordinates. While the heads of other departments (receiving, shipping, and maintenance) may have authority over their own departments, they do not have line authority over the assembly workers.

Question 17

According to the Financial Executives Institute,a function of the treasurer is ________.

Accepted Answer

The Financial Executives Institute identifies short-term financing as a function of the treasurer. Reporting and interpreting, protection of assets, and government reporting are also important duties of the treasurer, but they are not the primary function identified by the Institute.

Question 18

The function of the value chain that provides support activities to the customer is called ________.

Accepted Answer

Customer service is the function of the value chain that provides support activities to the customer. This includes activities such as answering customer inquiries, providing technical support, handling returns and exchanges, and resolving customer complaints. Marketing focuses on promoting and advertising the product or service, distribution involves getting the product or service to the customer, and consumer relations refers to the overall relationship between the company and its customers.

Question 19

Advertising is an example of the ________ function of the value chain.

Accepted Answer

Marketing is the function of the value chain that includes advertising, as well as other activities such as market research, branding, and product development. Advertising is a specific tactic within the larger scope of marketing, which aims to promote a product or service to a targeted audience.

Question 20

Staff managers give advice to line managers and have authority over line managers.

Accepted Answer

Staff managers provide advice and support to line managers but do not have authority over them; line managers are directly responsible for achieving the organization's goals and have authority over staff managers in matters related to core business operations.

Quiz 1: Managerial Accounting, the Business Organization