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Select the Term from the List Provided That Best Matches

Question 39

Matching

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

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:

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
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