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Select the Term from the List Provided That Best Matches

Question 148

Matching

Select the term from the list provided that best matches each of the following descriptions.

Premises:

Responses:

Costs that are incurred after the manufacturing process is complete

Benchmarking

The identification of the best practices used by world-class competitors

Cost allocation

The linked sequence of activities that create value for the customer

Direct costs

Costs that cannot be easily traced to specific products

Downstream costs

All costs related to obtaining or manufacturing a product intended for sale to customers

Financial accounting

Work that contributes to a product’s ability to satisfy customer needs

Indirect costs

The process of dividing a total cost into parts and assigning the parts to relevant cost objects

Period costs

The field of accounting that is designed to meet the information needs of external users

Product costs

General, selling, and administrative costs that are expensed in the period in which the economic sacrifice is made

Value-added activity

Costs that can easily and conveniently be traced to products

Value chain

Premises:

Costs that are incurred after the manufacturing process is complete

The identification of the best practices used by world-class competitors

The linked sequence of activities that create value for the customer

Costs that cannot be easily traced to specific products

All costs related to obtaining or manufacturing a product intended for sale to customers

Work that contributes to a product’s ability to satisfy customer needs

The process of dividing a total cost into parts and assigning the parts to relevant cost objects

The field of accounting that is designed to meet the information needs of external users

General, selling, and administrative costs that are expensed in the period in which the economic sacrifice is made

Costs that can easily and conveniently be traced to products

Responses:

Benchmarking

Cost allocation

Direct costs

Downstream costs

Financial accounting

Indirect costs

Period costs

Product costs

Value-added activity

Value chain

Correct Answer:

Premises:

Responses:

Costs that are incurred after the manufacturing process is complete

The identification of the best practices used by world-class competitors

The linked sequence of activities that create value for the customer

Costs that cannot be easily traced to specific products

All costs related to obtaining or manufacturing a product intended for sale to customers

Work that contributes to a product’s ability to satisfy customer needs

The process of dividing a total cost into parts and assigning the parts to relevant cost objects

The field of accounting that is designed to meet the information needs of external users

General, selling, and administrative costs that are expensed in the period in which the economic sacrifice is made

Costs that can easily and conveniently be traced to products