Collectively, all costs such as distribution, marketing, and design are part of

51) Collectively, all costs such as distribution, marketing, and design are part of
A) downstream activities.
B) fixed costs.   
C) the value chain.
D) manufacturing costs.
Answer:  C
Diff: 21
LO:  2-2
EOC:  S2-3
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits
52) What is the promotion of products and services known as?
A) Customer service
B) Marketing
C) Distribution
D) Design
Answer:  B
Diff: 1
LO:  2-2
EOC:  S2-3
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

53) All of the following relate to part of the value chain for a clothing company except

A) cost of advertising the new products.
B) administrative costs.
C) cost of shipping to retailers.
D) salaries of clothing designers.
Answer:  B
Diff: 2
LO:  2-2
EOC:  S2-3
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits


54) Which part of the value chain would depreciation on a factory be classified as?
A) Design
B) Distribution
C) Research and development
D) Production
Answer:  D
Diff: 1
LO:  2-2
EOC:  E2-23A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

55) Testing ways to increase the strength of your product would be classified as which part of the value chain?

A) Design
B) Distribution
C) Production
D) Research and development
Answer:  D
Diff: 1
LO:  2-2
EOC:  E2-23A
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

56) Which part of the value chain would a technical support hotline for customers be considered?
A) Design
B) Customer service
C) Distribution
D) Marketing
Answer:  B
Diff: 21
LO:  2-2
EOC:  E2-3
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

57) Advertising expenses would be considered which part of the value chain?

A) Customer service
B) Marketing
C) Production
D) Research and development
Answer:  B
Diff: 2
LO:  2-2
EOC:  S2-3
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits
58) The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?
A) Customer service
B) Marketing
C) Research and development
D) Design
Answer:  D
Diff: 2
LO:  2-2
EOC:  S2-3
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

59) The costs incurred to get merchandise to a company's retail store would be considered to be what part of the value chain?

A) Marketing
B) Customer service
C) Production or purchases
D) Research and development
Answer:  C
Diff: 2
LO:  2-2
EOC:  S2-3
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits