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Extra info for Cost Accounting: Foundations and Evolutions (Available Titles Cengagenow)
What is a core competency, and how do core competencies impact the feasible set of alternative organizational strategies? 7. Why should a business be concerned with “being green” when polluting might be substantially less expensive—thereby helping in the pursuit of a “low-cost producer” strategy and making that organization’s products less expensive for consumers? 8. Diﬀerentiate between authority and responsibility. Can a manager have one without the other? Explain. 9. ” Is this statement true or false?
The assumed range of activity that reﬂects the company’s normal operating range is referred to as the relevant range. Within the relevant range, the two extreme cost behaviors are variable and ﬁxed. A cost that varies in total proportionately with activity is a variable cost. Accordingly, a variable cost is a constant amount per unit. Relative to volume of units of output or number of customers serviced, examples of variable costs include the costs of material, hourly wages, and sales commissions.
In many instances, suppliers become extensions of a company’s upstream operations. • Production—acquiring and assembling resources to manufacture a product or render a service. For GM, production reﬂects the acquisition of tires, metal, paint, fabric, glass, electronics, brakes, and other inputs and the assembly of those items into an automobile. 6 What is a value chain, and what are the major value chain functions? 12 Chapter 1 Introduction to Cost Accounting • Marketing—promoting a product or service to current and prospective customers.