Data for a Factory -
Total Cost of Ownership Is a Management Accounting Technique

question 21

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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Total cost of ownership 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:

HBr

Hydrobromic acid, a diatomic molecule consisting of hydrogen and bromine, often used in organic synthesis.

1-Bromopentane

An organobromine compound consisting of a five-carbon alkane with a bromine atom attached to the primary carbon.

Di-sec-Butyl Ether

An organic compound formed by the dehydration reaction between two sec-butyl alcohol molecules, resulting in an ether with a dialkyl structure.

Sec-Butanol

A secondary alcohol with the chemical formula C4H10O, where the hydroxyl group is connected to the second carbon in a butane chain.