ACC210 Ch2 Set 2 REVERSED

Question 1

a set of linked processes or activities that begins with acquiring resources and ends with providing (and supporting) products that customers value

Answer 1

Value chain

Question 2

all the costs incurred in the development of new products and processes

Answer 2

Research and development costs (R & D)

Question 3

all costs associated with the design of a product and of the processes that will produce the new product

Answer 3

Design costs

Question 4

the costs of sourcing and managing incoming parts, assemblies and supplies

Answer 4

Supply costs

Question 5

the costs incurred during the production process

Answer 5

Production costs

Question 6

the overall costs of selling goods and services

Answer 6

Marketing costs

Question 7

the costs of storing, handling and shipping finished products

Answer 7

Distribution costs

Question 8

the costs incurred in servicing customers, including after-sales support and warranty claims

Answer 8

Customer service costs

Question 9

all costs of direct material, direct labour and manufacturing overheads

Answer 9

Manufacturing costs

Question 10

all costs incurred outside of manufacturing - that is, the cost of upstream and downstream activities

Answer 10

Non-manufacturing costs

Question 11

the cost of materials consumed in the manufacturing process to produce a product, where the cost can be traced to each product in an economic manner

Answer 11

Direct material

Question 12

the cost of salary, wages and labour on-costs for personnel who work directly on the manufactured product

Answer 12

Direct labour

Question 13

the additional costs that are incurred to employ personnel, including payroll tax, workers’ compensation and the employer’s superannuation contributions

Answer 13

Labour on-costs

Question 14

all manufacturing costs other than direct material and direct labour costs

Answer 14

Manufacturing overhead (indirect manufacturing costs / factory burden costs)

Question 15

materials used in production that cannot be directly assigned to individual products in an economic manner

Answer 15

Indirect materials

Question 16

any labour used in production that cannot be directly traced to individual products in an economic manner

Answer 16

Indirect labour

Question 17

a manufacturing department that does not work directly on producing products but is necessary for the manufacturing process to occur

Answer 17

Support department (service department)

Question 18

the extra wages paid to an employee who works beyond normal working hours

Answer 18

Overtime premium

Question 19

the cost of employees’ non-productive time, arising from events such as equipment breakdowns or new setups of production runs

Answer 19

Idle time

Question 20

the costs of direct labour and manufacturing overhead incurred to convert raw material to a finished product

Answer 20

Conversion costs