1. Explain the differences between financial accounting and cost accounting. Why are these differences important? 2. Place the letter of the appropriate accounting cost in Column 2 in the first Column (Answer) next to each decision category in Column 1. Answer Column 2 A. Costs for Inventory Column 1 Identifying the Best Performance Subsidiary Determining whether to Accept a Special Order Providing Cost Information for Tax Reporting B. Costs for Performance Evaluation C. Costs for Decision Making 3. Distinguish between the value chain and the supply chain. 4. How can cost accounting information together with a classification of activities into those that are value-added and those that are nonvalue-added help managers improve an organization's performance? 5. Value Chain and Classification of Costs: for cach cost in the following table, identify the stage in the value chain where this cost is incurred? Answer Cost Programmer costs for a new operating system Stage in the Value Chain 1. Design 2. Marketing Costs to ship computers to customers 3. Distribution 4. Research and Development Call center costs for support calls Salaries for employees working on new product designs Costs to purchase advertising at university stores 5. Customer Service 6. Production Costs of memory chips to make computers