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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]
Topic #: 4
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
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.
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