“The inspection point is the key to the allocation of spoilage costs.” Do you agree? Explain.

Q: A company engages in a number of activities as part of its quality control system: a. Which type of…

A: Introduction:- Quality control Costs are classified into four types as follows:- Prevention costs…

Q: Which of the following R&D costs can be capitalized by an SME? Group of answer choices Conceptual…

A: Research and development cost refers to the cost incurred by the SME for the development of new…

Q: “If a product is generating a loss, then it should be discontinued.” Do you agree? Explain.

A: A product should not be discontinued simply because it is generating loss because there are many…

Q: ered productively inefficient?

A: A choice is said to be productively inefficient when it is possible to produce higher units of…

Q: How do simulation analysis and scenario analysis differ in the way theytreat very bad and very good…

A: The process to evaluate different probable events and their outcomes that is end result of a project…

Q: At which point are errors are most costly to correct? a. programming b. conceptual design c.…

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Q: Describe the shortcomings of the direct write-off method.

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: Possible terms: Activity-Based Costing Appraisal or Inspection Costs Batch-Level Activities…

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Q: When a new system is being considered, one of the questions is whether or not to survey the current…

A: Survey refers to gathering the information on any considered subject. Survey could be done using…

Q: Which of following is a disadvantage of outsourcing

A: “The deliberate use of outside services to conduct tasks typically performed by internal personnel…

Q: Mechanisms used for reporting non-compliance and identifying risk issues can include which of the…

A: Answer: Balance scorecard is the management tool that can help identify the shortcomings of the…

Q: why do managers use IRR for strategic decison more than NPV?

A: Capital Budgeting tools and techniques help managers appraise investment opportunities.  It is…

Q: “Prevention is much cheaper than external failure.” Do you agree with this statement? Why or why…

A: There are 4 types of quality costs which are as follows:

Q: What is meant by the statement, ‘‘Inventories camouflage production problems and can cause…

A: Production: Production activity consist use of fixed and variable resources to produce final…

Q: Which of the following aspects of a cost-benefit study would have the greatest uncertainty as to its…

A: Cost - benefit analysis is a decision making process in which costs incurred and revenues earned due…

Q: What type of Risks are exists in the conversion cycle?

A: Cash conversion cycle (CCC) CCC is a tool for tracking the time the company spends to get the cash…

Q: What does the elimination process accomplish?

A: Intercompany elimination:   Intercompany elimination refers to the process in which the transactions…

Q: Why does the high cost of the system negatively impact the organization's bottom line?

A: The question is based on the concept of bottom line of a company and its relationship with high cost

Q: Which of the following statements are an example of a violation of the sunk cost principle? There…

A: Since you have posted a question with multiple sub parts therefore, we will solve the first three…

Q: Explain the term Flaws in Project Ranking by IRR?

A: Answer: IRR is nothing but an internal rate of return; it is the rate of discount which makes a…

Q: What is the nature of research and development costs?

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Q: Explain the risks associated with the creation of unnecessary roles and why it can happen.

A: Role Based Access Control: RBAC can be defined as an access control which is used to restrict the…

Q: “Normal spoilage is planned spoilage.”Discuss.

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Q: “Total input includes abnormal as well as normal spoilage and is, therefore, inappropriate as a…

A: Inventory shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: What is the benefit of identifying avoidable and unavoidable cost in decision making process?

A: Avoidable costs: Avoidable Costs, as the name suggests, are the costs that can be avoided of the…

Q: “If a product line is generating a loss, then it should be discontinued.” Do you agree? Explain.

A:

Q: Which of the following is not included in the procedures of applying the Theory of Constraints for…

A: Theory of Constraints says that in order to maximize efficiency, the production should be limited to…

Q: How can we use the PW criterion to compare the alternatives to minimize expenditures?

A: The full form of PW is present worth. Present worth is known as the present value of the investment…

Q: Which of the following is a false statement about scrap and by-products? Select one: a. Both scrap…

A: Scrap is the incidental residue from material used in production activities that can be recovered…

Q: The project with the highest IRR may not be the preferred alternative. To illustrate the flaws of…

A: Internal Rate of Return (IRR) is that discounting rate at which Net Present Value of the project is…

Q: What do you think of a fully tested and defect free product? Can it be considered as a quality…

A: To change the framework, the executives first necessities to recognize unusual from typical variety.…

Q: Discuss the benefit of identifying avoidable and unavoidable cost in decision making process.

A: Benefit of Avoidable Cost   1. Avoidable cost Avoidable cost helps management in decision making…

Q: here should firms do most of their quality spending? Group of answer choices a. Inspection costs b.…

A: The firms do most of their quality spending in -

Q: Define the term spoilage.

A: Definition:   Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare…

Q: Which of the following is not an advantageous reason to reduce inventories? a. Inventories provide a…

A: Inventories are the stocks of finished goods which are purchased, utilized as well as maintained by…

Q: Is it possible to fully eliminate non-value added activities? If yes, how? If no, why?

A: Value can simply be defined as something which the customer is willing to pay or receive. Non Value…

Q: Explain why monitoring alone cannot completely eliminate the agency costs

A: The costs incurred as a result of conflict of interest between company and its stakeholders is known…

Q: Which of the following statements about the visual fit method is/are correct? A: The method results…

A: Answer-    Visual Fit Method is a cost estimation method in which previous data on cost levels and…

Q: “The unit cost of normal spoilage is the same as the unit cost of abnormal spoilage.”Do you agree?…

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Q: Explain how IT outsourcing can lead to loss of strategic advantage.

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Q: Two potential pitfalls encountered in the design of performance indicators and measurement systems

A: Transfer price is the price quoted between the departments or companies that are related to each…

Q: “Units of abnormal spoilage are inferred rather than identified.”Explain.

A: Spoilage:Spoilage is the defective item at intermediate or final stage. The spoilage goods cannot be…