Exam 1 Review

Question 1

value chain

Answer 1

chain of cirtical business processes that create business value

Question 2

primary activities

Answer 2

inbound logistics, operations, outbound logistics, marketing/sales, service

Question 3

support activities

Answer 3

procurement, info technology, human resources, infrastructure

Question 4

inbound logistics

Answer 4

receiving/storing raw materials or partially completed materials

Question 5

operations

Answer 5

activites that transform input to finished g/s

Question 6

outbound logisitcs

Answer 6

warehouse and distribute finished goods to customers

Question 7

marketing/sales activities

Answer 7

identify needs/wants of customers to attract to g/s

Question 8

service activities

Answer 8

support customers after g/s sold to them

Question 9

procurement

Answer 9

purchasing inputs (raw materials, supplies, equipment)

Question 10

info technology

Answer 10

technologies to support value-creating activities

Question 11

human resources

Answer 11

recruiting, hiring, training, and compensating employees

Question 12

infrastructure

Answer 12

needed to support primary activities of company (CEO, finance/accounting dept., legal dept.)

Question 13

cost advantage

Answer 13

strategy that offers g/s to customer a price lower than competitors’

Question 14

economic scale

Answer 14

cost advantage experienced by firm when output is increased

Question 15

product differentiation

Answer 15

strategy in which company seeks to offer g/s that are distinct compared to competitors

Question 16

financial accounting

Answer 16

information for external users, follows standards, perform audit, mandatory reporting, financial reporting system

Question 17

management accounting

Answer 17

information for internal users, follows no set standards, no audit, not mandatory reporting, variety of info systems used

Question 18

management accountant

Answer 18

analyzes accounting-related data to help make effective business decisions

Question 19

data scientist

Answer 19

acquire, maintain, curate, access, manipulate, and statistically test data to address business questions

Question 20

data analysis software

Answer 20

Microsoft excel, power bi, tableau desktop

Question 21

cost object

Answer 21

anything for which a measurement of cost is needed

Question 22

direct cost

Answer 22

easily identified to belong to a specific cost object

Question 23

indirect costs

Answer 23

not easily identified to belong to a specific cost object

Question 24

manufacturing overhead

Answer 24

cost incurred manufacturing goods

Question 25

cost allocation

Answer 25

estimate amount of indirect cost to assign to specific cost objects

Question 26

cost accumulation

Answer 26

collection of cost data in accounting system

Question 27

cost assignment

Answer 27

process of tracing direct cost and allocating indirect cost

Question 28

variable costs

Answer 28

change based on number of units produced

Question 29

fixed cost

Answer 29

do not change based on number of units produced

Question 30

mixed cost

Answer 30

include both fixed and variable components

Question 31

prime cost

Answer 31

direct materials and direct labor

Question 32

conversion cost

Answer 32

direct labor and manufacturing overhead

Question 33

period cost

Answer 33

expenses not included in product cost

Question 34

product cost

Answer 34

all cost incurred to produce g/s to customer

Question 35

inventoriable cost

Answer 35

product cost

Question 36

cost of goods sold

Answer 36

inventory that is sold

Question 37

relational databases

Answer 37

data is stored in seperate tables but can function together through relating one table to another

Question 38

attributes

Answer 38

characteristics of different entities; column of database

Question 39

records

Answer 39

row of database

Question 40

data type

Answer 40

possible set of values that each attribute can possess

Question 41

primary key

Answer 41

field that functions as a unique identifier for the record

Question 42

foreign key

Answer 42

common field between tables

Question 43

high-low method

Answer 43

uses highest and lowest volume points to approximate cost equation

Question 44

regression

Answer 44

statistical method used to estimate relationship between outcome variables and predictor variables

Question 45

cvp analysis

Answer 45

recognizes decisions about product pricing, production levels, production cost, and profitability goals

Question 46

differential analysis

Answer 46

prescriptive analytics technique to determine change in profit

Question 47

relevant cost

Answer 47

expected future costs that differ among courses of action

Question 48

relevant revenue

Answer 48

expected future revenues that differ among courses of action

Question 49

sunk cost

Answer 49

past costs spent that cannot be recovered regardless of future action

Question 50

price elasticity of demand

Answer 50

measure of change in consumption of a product in relation to change in price

Question 51

break-even point in units

Answer 51

fixed cost/contribution margin per unit

Question 52

target profit in units

Answer 52

(fixed costs + target profit)/contribution margin per unit

Question 53

margin of safety in units

Answer 53

(sales units - break even units)/sales units