Data for a Factory -
Life Cycle Costing Is a Management Accounting Technique with

question 2

Multiple Choice

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$

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Life cycle costing is a management accounting technique with the following important supply chain implications:

• A)Recognition that the cost of acquiring goods and services includes more than just quoted piece price.
• B)Locked in cost issues may affect suppliers.
• C)Sharing of cost and output data enables benefits of partnership sourcing.
• D)Synchronisation of production plans.

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Definitions:

Active Listening

A communication technique involving giving full attention to the speaker, understanding their message, and providing appropriate feedback.

Processing

The series of actions or steps taken in order to achieve a particular end, often relating to the handling or management of information or materials.

Active Listening

The practice of paying full attention to the speaker, understanding their message, and responding thoughtfully.

Informal Network Lines

The unofficial and usually invisible lines of communication that exist within an organization, based on personal relationships rather than organizational charts or structures.