Management Accounting - Study Mode
[#186] Type of outcomes, which can never be measured in numerical terms in books of accounts are classified as
Correct Answer
(C) qualitative factors
Explanation
Solution: Type of outcomes, which can never be measured in numerical terms in books of accounts are classified as qualitative factors. Qualitative factors are outcomes from certain actions that are difficult or impossible to measure.
[#187] Decisions made by company, which products to manufacture and sell and in what quantities out, of many product lines are called
Correct Answer
(C) product mix decisions
Explanation
Solution: Decisions made by company, which products to manufacture and sell and in what quantities out, of many product lines are called product mix decisions. Product mix decision refers to the decisions regarding adding a new or eliminating any existing product from the product mix, adding a new product line, lengthening any existing line, or bringing new variants of a brand to expand the business and to increase the profitability.
[#188] Production of goods or services that can be bought from outside suppliers is classified as
Correct Answer
(D) in-sourcing
Explanation
Solution: Production of goods or services that can be bought from outside suppliers is classified as in-sourcing. Insourcing is a business practice in which work that would otherwise have been contracted out is performed in house. Insourcing often involves bringing in specialists to fill temporary needs or training existing personnel to perform tasks that would otherwise have been outsourced.
[#189] Cost such as dispose value of an old machine is $6000 is classified as
Correct Answer
(D) relevant
Explanation
Solution: Cost such as dispose value of an old machine is $6000 is classified as relevant cost. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions.
[#190] Costs which are related to different functions of value chain of company, such as marketing and manufacturing costs are considered as
Correct Answer
(C) business function costs
Explanation
Solution: Costs which are related to different functions of value chain of company, such as marketing and manufacturing costs are considered as business function costs. Business function costs are the total sum of all expenses both fixed and variable for a specific step in the value chain. In other words, it's the total cost associated with each step a product takes from the manufacturer to the consumer.