Cyber Monday 2023! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: CM25OFF
Welcome to Pass4Success

- Free Preparation Discussions

IMANET Exam CMA Topic 4 Question 43 Discussion

Actual exam question for IMANET's Certified Management Accountant exam
Question #: 43
Topic #: 4
[All Certified Management Accountant Questions]

Pazer, Inc produces portable televisions. Pazer's product manager proposes to increase the cost structure by adding voice-activated volume/channel controls to the television, and also adding three additional repair personnel to deal with products returned due to defects, Are these costs value-added or nonvalue-added? Cost of Voice-Activated Controls Cost of Additional Repair Personnel

Show Suggested Answer Hide Answer
Suggested Answer: B

The additional cost of the voice-activated controls as a value-added cost because it provides new unctionality for the consumer. The cost of additional repair personnel, on the other hand, is onvalue-added since it is incurred to address deficiencies in quality.


Currently there are no comments in this discussion, be the first to comment!

Save Cancel