1. Price elasticity of demand is measured as the percentage change in quantity divided by
the percentage change in price. Examples of a product with relatively elastic demand are
movie tickets, meals and automobiles. Examples of a product with relatively
1 Independent projects are such that the
acceptance of one does not preclude the acceptance of another. With mutually exclusive projects,
however, acceptance of one precludes the acceptance of others.
2 The timing and quantity of cash flows determine the
1 Define price elasticity of demand. Give an example of a product with relatively elastic demand and
an example of a product with relatively inelastic demand.
Price elasticity of demand is measured by the percentage in quantity divided by the percentage c
1 Describe a strategic-based responsibility accounting system. How does it differ from activity-based
A strategic-based responsibility accounting system is a system which is responsible for modifying the
corporations policy and
Chapter 14 Discussion Qs
1 What is the difference between quality of design and quality of conformance?
Quality of design: is a process of evaluating the standard of efficiency of the design activity, of judging
operational needs of the product, an
1. What are the two dimensions of the activity-based management model? How do they
The Cost Dimension: is related with exact allocation of costs to cost objects. Like customers
and products. The focal point of this dimension is Activity-Based co
Cost Accounting 2
1. What does it mean to obtain a competitive advantage? What role does the cost management
system play in helping to achieve this goal?
By definition, competitive advantage is creating better value for the
1 What is lean manufacturing?
Lean manufacturing is an approach designed to eliminate waste and maximize customer value. It is
characterized by delivering the right product, in the right quantity, with the right quality (zero-defect), at
the exact time th
1. Lean manufacturing is an approach designed to eliminate waste and maximize
2. The five principles of lean thinking are precisely specify value by each particular
product, identify the value stream for each, make value flow without inter
1 What is tactical decision making?
Is choosing among alternatives with an immediate or limited end in mind.
2 Tactical decisions are often small-scale decisions that serve a larger purpose. Explain what this
They should support the overall strateg