AICPA CPA-Business Exam - Topic 1 Question 67 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 67
Topic #: 1

When applying value chain analysis, a firm asks it accounting department to perform an analysis of the sources of profits and costs of activities that exist within the firm. The firm is performing which form of value chain analysis?

AInternal differentiation analysis.

BInternal costs analysis.

CVertical linkage analysis.

DNone of the above.

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. 150 units is the average inventory including a 50-unit safety stock.

Choices 'a', 'c', and 'd' are incorrect, per the above calculation.

by Paris at Mar 25, 2023, 05:49 PM

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Colette

4 months ago

I thought it could be none of the above!

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Cristina

4 months ago

Internal costs analysis makes the most sense here.

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Rebecka

4 months ago

Wait, are we sure it's not vertical linkage analysis?

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Leslie

4 months ago

Totally agree, that's the right choice!

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Carmen

4 months ago

It's definitely internal costs analysis.

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Billi

5 months ago

I’m leaning towards internal costs analysis too, but what if it’s none of the above? That option is throwing me off a bit.

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Kent

5 months ago

I feel like we've seen a question like this before, and it was about vertical linkage analysis, but that seems more about supply chain interactions.

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Eleni

5 months ago

I'm not entirely sure, but I remember something about internal differentiation analysis focusing on how activities create value.

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An

5 months ago

I think this might be internal costs analysis since they are looking at profits and costs within the firm.

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Shannon

5 months ago

This looks like a straightforward snapshot question. I think option C is the way to go - taking a snapshot while quiescing the guest file system should give us a consistent state to restore from.

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Shanice

5 months ago

Okay, let me see if I can break this down step-by-step. The key seems to be understanding how the prior period errors in depreciation expense should be corrected in the 1991 and 1990 financial statements.

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Deane

5 months ago

I've got this! The three correct options are A, B, and F. CLI access to the serial console, SSH access to the management port, and HTTPS access to the management port. I'm confident in my answer and ready to submit.

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Chandra

5 months ago

Key strategy is to understand the fundamental characteristics of each payment system. Case rates, fee schedules, RBRVS - what makes them distinct?

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Marvel

10 months ago

This question is making me hungry. I could really go for a nice value meal right about now.

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Laura

9 months ago

C) Vertical linkage analysis.

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Queenie

9 months ago

B) Internal costs analysis.

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Sheron

9 months ago

A) Internal differentiation analysis.

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Carli

10 months ago

I'm just glad they didn't ask about the 'horizontal linkage analysis' - that's always a tough one to remember!

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Marge

8 months ago

C) Vertical linkage analysis.

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Emilio

8 months ago

B) Internal costs analysis.

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Earnestine

9 months ago

A) Internal differentiation analysis.

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Jolene

10 months ago

Hold on, this is a trick question! The question says the firm is performing 'value chain analysis,' and none of the options explicitly mention that. I'm going with D, 'None of the above.'

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Tyra

8 months ago

Good call, D is the way to go.

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Teddy

8 months ago

Let's go with D, 'None of the above.'

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Ligia

8 months ago

I agree, 'None of the above' seems like the best choice.

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Paola

8 months ago

I think you're right, it does seem like a trick question.

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Francine

8 months ago

I agree, D) None of the above seems like the best choice.

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Valene

8 months ago

I'm going with D) None of the above.

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Abel

8 months ago

I believe it's B) Internal costs analysis.

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Emilio

9 months ago

I think it's A) Internal differentiation analysis.

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Jenelle

10 months ago

I'm not convinced. Analyzing the sources of profits and costs within the firm sounds more like a vertical linkage analysis to me. Option C seems like the right choice.

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