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9. When in the management process do managers seek an answer to the question "Did we meet our cost-reduction goals for non-value-adding activities?"a. Planningb. Performingc. Evaluatingd. Communicatinge. None of these
13. A cost hierarchya. classifies costs as value-adding or non-value-adding.b. is a framework used in traditional product costing settings in which a single predetermined overhead rate is used to apply indirect costs to products.c. is a useful framework for grouping activities and assigning activity-based costs.d. assumes that the cost behavior of any activity can be classified either as variable or fixed with respect to changes in the number of units produced.e. classifies costs as direct or indirect costs.
14. Which of the following statements about a bill of activities is false?a. A bill of activities is identical to a bill of materials.b. A bill of activities is a list of activities and related costs that is used to compute the costs assigned to activities.c. A complex bill of activities may include activity cost rates and cost driver levels used to assign costs to cost objects.d. A bill of activities may be used as the primary document to calculate the product cost in both job order and process costing systems.e. All of the above are true statements.
20. Which of the following statements about a value chain is false?a. It helps managers understand the independence of activities within an organization.b. A company's value chain is part of its supply chain.c. A value chain is a related sequence of value-creating activities within an organization.d. A company can enhance its profitability by understanding not only its own value chain, but also how its value chain fits into suppliers' and customers' value chains.e. All of the above are true statements.
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