$3.$ Conceptual Connection: When asked why she decided to buy Confiar, Adriana responded, "I think that Confiar offers more value than Drantex." What are the possible sources of this greater value? What implications does this have for the managerial accounting information system?

The fill in the blank $1$ of $3$

service component and its delivery time appear to be better than fill in the blank $2$ of $3$

$.$ Thus, the realization of these features appears to outweigh the additional sacrifice $($the additional operating and maintenance cost$)$ associated with the Confiar PC$.$ The implications for management accounting are straightforward. The management accounting fill in the blank $3$ of $3$

should collect and report information about customer realization and sacrifice. Much of this information is external to the firm but clearly needed by management.

$4.$ Conceptual Connection: Suppose that Adriana's decision was prompted mostly by the desire to receive the computer quickly. Informed that it was losing sales because of the longer time to produce and deliver its products, the management of the company producing Drantex decided to improve delivery performance by improving its internal processes. These improvements decreased the number of defective units and the time required to produce its product. Consequently, delivery time and costs both decreased, and the company was able to lower its prices on Drantex. Explain how these actions translate into strengthening the competitive position of the Drantex PC relative to the Confiar PC$.$ Also discuss the implications for the managerial accounting information system.

Better quality and shorter delivery time increase the fill in the blank $1$ of $3$

of what the customer receives, while lowering the fill in the blank $2$ of $3$

decreases the amount paid. In total, customer value has increased, and presumably, this should make the fill in the blank $3$ of $3$

PC much more competitive. This example illustrates how quality, time, and costs are essential competitive weapons. It also illustrates how critical it is for the management accounting system to collect and report data concerning these three dimensions.