IMANET Exam CMA Topic 4 Question 43 Discussion

Actual exam question for IMANET's CMA exam

Question #: 43
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

AValue-added Value-added

BValue-added Nonvalue-added

CNorivalue-added Value-added

DNonvalue-added Nonvalue-added

Show Suggested 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.

by Lashaunda at May 07, 2022, 08:25 PM

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