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CA Final Strategic Cost Management and Emerging Business Models — practice questions — page 2

Explore 46 free Strategic Cost Management and Emerging Business Models questions in CA Final Cost and Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Strategic Cost Management and Emerging Business Models questions and exercises with answers

Showing questions 31–46 of 46.

The theory of constraints values inventory strictly on which cost?Read the answer and worked solution →In the theory of constraints, a bottleneck is also referred to as what?Read the answer and worked solution →Goldratt argued that labor efficiency measures lead to what?Read the answer and worked solution →At which level does Porter say a value chain should be constructed?Read the answer and worked solution →What does Porter call the larger interconnected system of value chains?Read the answer and worked solution →Whole-life cost is also known as which of these?Read the answer and worked solution →Whole-life costing brings which costs into decisions beyond the purchase price?Read the answer and worked solution →In whole-life appraisal, how are future costs and benefits usually converted to present terms?Read the answer and worked solution →In whole-life project appraisal, which option is typically chosen?Read the answer and worked solution →Under a freemium pricing strategy, what is provided free of charge?Read the answer and worked solution →Why is freemium especially suited to software?Read the answer and worked solution →In a subscription business model, what does the customer pay?Read the answer and worked solution →Who pioneered the subscription model in the 17th century?Read the answer and worked solution →In a network effect, the value to a user depends on what?Read the answer and worked solution →A sharing economy chiefly enables reuse of what?Read the answer and worked solution →Why do subscription firms offer a free trial?Read the answer and worked solution →

Worked practice questions

The theory of constraints values inventory strictly on which cost?

  1. Full absorption cost
  2. Net realisable value
  3. Replacement cost
  4. Totally variable cost
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Correct answer: D. Totally variable cost

Inventory is valued only on the totally variable cost of creating it, with no overhead allocation.

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In the theory of constraints, a bottleneck is also referred to as what?

  1. Constraint
  2. Buffer stock
  3. Investment pool
  4. Throughput gap
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Correct answer: A. Constraint

Throughput accounting calls the bottleneck a constraint, the factor limiting the system's output.

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Goldratt argued that labor efficiency measures lead to what?

  1. Better capacity planning
  2. Decisions that harm firms
  3. Lower inventory levels
  4. Faster constraint relief
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Correct answer: B. Decisions that harm firms

In his view, chasing labor efficiency under modern conditions produces decisions that damage rather than help the organization.

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