AICPA Exam CPA-Business Topic 1 Question 67 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 67
Topic #: 1

When applying value chain analysis, a firm asks it accounting department to perform an analysis of the sources of profits and costs of activities that exist within the firm. The firm is performing which form of value chain analysis?

AInternal differentiation analysis.

BInternal costs analysis.

CVertical linkage analysis.

DNone of the above.

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. 150 units is the average inventory including a 50-unit safety stock.

Choices 'a', 'c', and 'd' are incorrect, per the above calculation.

by Paris at Mar 25, 2023, 05:49 PM

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Marvel

2 months ago

This question is making me hungry. I could really go for a nice value meal right about now.

upvoted 0 times

Laura

14 days ago

C) Vertical linkage analysis.

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Queenie

18 days ago

B) Internal costs analysis.

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Sheron

1 months ago

A) Internal differentiation analysis.

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Carli

2 months ago

I'm just glad they didn't ask about the 'horizontal linkage analysis' - that's always a tough one to remember!

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Marge

4 days ago

C) Vertical linkage analysis.

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Emilio

5 days ago

B) Internal costs analysis.

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Earnestine

10 days ago

A) Internal differentiation analysis.

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Jolene

2 months ago

Hold on, this is a trick question! The question says the firm is performing 'value chain analysis,' and none of the options explicitly mention that. I'm going with D, 'None of the above.'

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Francine

6 minutes ago

I agree, D) None of the above seems like the best choice.

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Valene

1 days ago

I'm going with D) None of the above.

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Abel

6 days ago

I believe it's B) Internal costs analysis.

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Emilio

15 days ago

I think it's A) Internal differentiation analysis.

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Jenelle

2 months ago

I'm not convinced. Analyzing the sources of profits and costs within the firm sounds more like a vertical linkage analysis to me. Option C seems like the right choice.

upvoted 0 times