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CHAPTER 19
COSTING AND THE VALUE CHAIN
OVERVIEW OF BRIEF EXERCISES, EXERCISES, PROBLEMS, AND CRITICAL
THINKING CASES
Brief
Exercises
B. Ex. 19.1
B. Ex. 19.2
B. Ex. 19.3
B. Ex. 19.4
B. Ex. 19.5
B. Ex. 19.6

Topic
Value chain components
Capturing market share with target prices
Cost of quality
Cost reduction non-value-added activities
Manufacturing efficiency in a JIT system
Activity-based management cost savings

B. Ex. 19.7
B. Ex. 19.8
B. Ex. 19.9
B. Ex. 19.10

Target costing
Cost of quality
Characteristics of quality
Target costing and cash flows

Exercises
19.1
19.2

Topic
Accounting terminology
Value chain activities

19.3
19.4
19.5
19.6
19.7
19.8
19.9
19.10
19.11
19.12
19.13
19.14
19.15

Learning
Objectives
19-1
19-4
19-7
19-2
19-6 …show more content…

60 Strong

19.3 A,B

Meiger Mining/Oro Mining
A target costing problem that requires the student to analyze an alternative offered for reaching the desired target cost.

30 Medium

19.4 A,B

Arusetta, Inc./Nazu, Inc.
A cost of quality problem that requires the construction of a categorical cost of quality report. The student is also asked to analyze changes in specific quality costs in light of the implementation of a total quality management program.

40 Medium

19.5 A

Home Depot
Students read Note 1 from Home Depot's annual report to find references to Home Depot's value chain.

30 Medium

19.6 A

Kare Company

40 Medium

Students identify quality costs and calculate quality costs as a percent of sales over two years. Students prepare a graph illustrating the trade-off between prevention and failure costs.
19.7 A

BookWeb, Inc.

50 Strong

Students use activity-based management tools to manage the value chain of a book warehousing operation. Students must identify activities that give rise to non-value-added costs at the company.

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19.8 A

Kimberly-Clark Corporation

30 Medium

Recent areas of focus for Kimberly-Clark as identified in their annual report are matched with the concepts introduced in the chapter. Students consider how the concepts will help

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