Explain what is meant by the controllability principle and apply it to determine whether the production manager should be held responsible for variances in the following costs: The cost of raw materials if material purchases are negotiated by the purchasing department, in this period higher quality materials were purchased than planned at the request of the sales manager.
Q: What are the primary differences in an RFB, RFP, comma RFQ, and when would a contracting officer…
A: RFB, RFP, and RFQ stand for a request for information, request for quotation, and request for…
Q: Which of the following costs is a product cost? Depreciation of factory maintenance equipment.…
A: The product cost is the cost which is directly identified to the cost of making a product. Product…
Q: Differentiation would consist of creating differences in the firms product and service that is…
A: Competition can be defined as the activity for achieving the gain of the market by defeating the…
Q: 4-In which method of purchasing, price fluctuations are negligible. a. Co-operative purchasing b.…
A: Price fluctuations in purchasing are often observed in purchasing because of various factors like a…
Q: You are the Director of Contracts at the Ministry of Energy. The contract for South Coast Drilling…
A: Advertisements can be defined as a paid form of promoting a product with an objective of increasing…
Q: Companies take a physical count of inventory at the end of the accounting period. Taking a physical…
A: At the end of an accounting period, the company calculates the rest of the inventory to check if…
Q: he method of production that largely determines the capability of suppliers to make products…
A: Production is the process of turning inputs of scarce resources into an output of goods or services.
Q: Was it right in challenging my manager? Should I have handled this differently?
A: Profit is the residual revenue, also known as income after all expenditures have been deducted from…
Q: Find the break-even point for the firm whose cost function C and revenue function R are given. C(x)…
A: The concept used here is break even point analysis.
Q: The difference between what a consumer would be willing to pay and the price actually paid is…
A: The difference between what a consumer would be willing to pay and the price actually paid is…
Q: 4- The agreement among manufacturers or among wholesalers to fix the price is called __________. a.…
A: Below is the solution:-
Q: KALI, Inc., manufactures home appliances that are marketed under a variety of trade names. However,…
A: Given that: Sample size , n = 15 Acceptance Number, c = 1 p0 = 0.04 Using; f(x) =…
Q: An Estimate price, which is expected to be paid by the customer for a particular market offering is…
A: An Estimate price, which is expected to be paid by the customer for a particular market offering is…
Q: Explain the implications relating to ownership when goods are: a. In transit (FOB) Shipping Point…
A: THE ANSWER IS AS BELOW:
Q: The grievance process/procedure is the vehicle for administering the contract on a _____basis a.…
A: Ans. At the point when an employee feels that they've been violated - be it an unjustifiable check,…
Q: All Things Auto is a retailer that purchases and sells vehicle parts & accessories, including…
A: A.
Q: Explain what is incremental approach ? Describe an ideal situation and least ideal situation for its…
A: The incremental approach comprises methods to integrate small improvements rather than significant…
Q: Liabilities decrease and cash decreases Liabilities increase and the Income Statement…
A: Improve deals by selling and tolerating gift vouchers In spite of the fact that gift vouchers are…
Q: How do the ‘make’ or ‘buy’ decisions regarding either making necessary factor inputs in house vs…
A: Make or Buy Decisions Make or Buy decisions refer to the decisions that are made when there is a…
Q: When SS Electroplating Company started the electroplating operations in a residential location in…
A: Cost-cutting refers to the process of reducing the cost of certain procedures and processes that are…
Q: ABC company purchased a machine use to their business whose first cost is P 500,000 with an…
A: The question is related to Depreciation. The Depreciation as per Straight-line Method is calculated…
Q: Three companies A, B and C are in competition and are currently holding 30%, 30% and 10% of the…
A: Ans. Market share can be calculated as:- Total share retain + share received Total share retain =…
Q: Vulcan Radio Manufacturing Inc. ("Vulcan") is a well-known manufacturer of radio broadcast…
A: To produce and sell refers to the activity of manufacturing goods and services and making them…
Q: Maria wants to research the other lists that may work well for her clients' needs. Which 3 lists…
A: Given Maria wants to research the other lists that may work well for her client’s To find: Which of…
Q: Pineapple Co.'s revenue and total costs are $3,000,000 and $1,500,000, respectively, in 2019.…
A: Revenue = $3,000,000 Total Costs = $1,500,000 Profit = Revenue - Total Costs =…
Q: Determine the planned purchases for January (a) at retail and (b) at cost for the lingerie…
A: Given that: Sales = $88,000 Markdowns = 8% BOM Stock = $81,000 EOM Stock = $66,000 Markup = 49%
Q: Classique Designs sells a variety of merchandise, including school shoes for girls. The business…
A: On November 14, owing to an increased demand for this brand, the manager of Classique purchased 80…
Q: Relevant Cost Exercises Each of the following situations is independent:a. Make or Buy Terry Inc.…
A: Total cost to produce in-house =( +$28+$18+$16)/unit *2000 units =$124,000 Total costs to purchase…
Q: State which of the following order winners or order qualifiers along with the reason - 1. Pepsi…
A: An order qualifier is the property of the precise goods or service that is needed for the goods or…
Q: The director collected $3000 amount as funds for the tournament on the condition that the amount…
A: Cheating is considered fraudulent and dishonest activity. It is the act of deceiving a person in…
Q: Arts N Crafts Industries manufacturers high-end lightfixtures, which it sells internationally. The…
A: Given informations, Product weight = 8 pounds Current freight = 85 Proposed class with the new…
Q: Who will least likely be involved in establishing standard costs for a company? a)the president…
A: There is top-level management, middle-level management, and low-level management. There are…
Q: What are the consequences for ensuring that each of the many sponsoring firms receives the maximum…
A: Sponsors provide money for merchandise and resources used to promote meetings, trade shows, teams,…
Q: The sales of High-Brite Toothpaste are believed to be approximately normal, with a mean of 10,000…
A: Mean μ = 10,000 Standard Deviation σ = 1500 Z value for 95% Probability = 1.645 [ Using the Z…
Q: By definition, "Price" isSingle choice. a. what is charged for something (product or service) b.…
A: Pricing refers to a marketing strategy in which a marketer makes strategies to determine the price…
Q: _______ refers to the ability of a supply chain to quickly adjust output to match market demand:…
A: Agility refers to the ability of a supply chain to quickly adjust output to match market demand.
Q: identified risks and purpose solution for each Price competitiveness risk of Lazada using…
A: The name of PDCA comes from the abbreviation "Plan , Do, Check, Act" , and is otherwise called the…
Q: At the beginning of November, children’s toys had a retail stock of $148,270. Sales for the month…
A: Stock to sales ratio: Stock or inventory to sales ratio represents the performance of sales…
Q: Did the company have the correct quantity of goods and services Pay for them?
A: Goods and services are the outputs offered by businesses to satisfy the demands of consumer and…
Q: Jennifer has a small business mixing and selling essential oils. One product is a mixture of two…
A: Given data, Supplier A: lavender: $5.80/ounce peppermint: $4.20/ounce Total cost: $128.40…
Q: A cattle producer purchased an insurance contract form the USDA Risk Management Agency. The contract…
A: Insurance is an agreement, addressed by a strategy, where an individual or substance gets monetary…
Q: 32.Fuller Paints shipped the wrong shade of paint to a customer. The customer agreed to keep the…
A: The correct option is option c. sales allowance.
Q: Describe the good/service you purchased, including the type of item, brand name, and price. Explain…
A: Walmart's essential item is its retail administration, including retail administration satisfied…
Q: The target market generally determines the menu pricing strategies. mention the factors that a…
A: The process of estimating the price at which businesses want to offer different foods at their…
Q: Which criterion for the following objective is not met? Acme Global will sell 50% more widgets and…
A: In this given scenario Acme global has not clearly defined the objective because two targeted…
Q: A pharmaceutical company has the following situation involving the processing of purchases…
A: Context diagram: - The Context diagram shows the system under consideration as a single high-level…
Q: A salesperson starts calling up and inviting customers walking in the Mall to get inside his/her…
A: THE ANSWER IS AS BELOW:
Q: The new book, The secrets of the world of Fungi was published as a hardback edition for £20 in March…
A: Book has initially priced at £20 and later after some months, it was priced at £9.90. Here the price…
Explain what is meant by the controllability principle and apply it to determine whether the
- The cost of raw materials if material purchases are negotiated by the purchasing department, in this period higher quality materials were purchased than planned at the request of the sales manager.
Step by step
Solved in 2 steps
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?The student develops at least one thorough and detailed recommendation for each ratio that is appropriate for the Barry Computer Company to improve financial performance over time (over the next 3–5 years to meet industry standards). Student provides a thorough and detailed assessment of limitations of the exclusive use of ratio analysis for evaluating financial performance, including any qualitative factors that could also complement the ratio analysis and play an important role in improving financial performance.The Company has the oppotunity to introduce a new product. The sales manager believes that the firm could sell 5,000 units per year at 14 per unit for 5 years. The production manager has determined that machinery costing 60,000 and having a 5 year life and no salvage value could be required. The machinery will have an annual fixed cash operating costs of 4,000. Variable cost per unit will be 8. Straight-line depreciation is to be used for both book and tax purposes. The tax rate is 40% and the firm's cost of capital is 14%. What is the Net Present Value of the Investment?
- Company ABC manufactures a seasonal product with uncertain demand. The production cost of the product is $130 per unit, and the product will be sold to the customers at $160 per unit. The demand of the product during a selling season is normally distributed with mean 1000 and standard deviation 300. At the end of the selling season, any unsold quantity can be disposed of in a clearance sale for $80 per unit. In order to reach the required standard imposed by an ethical and sustainable supplier certification program, ABC must improve its corporate social responsibility (CSR) performance. ABC is considering two possible investments that enable it to meet the required standard. These investments will lead to a higher CSR level, which will result in greater market demand. Investment 1 has a lump-sum cost of $2000, and it will increase the mean and standard deviation of the demand by 100 units and 20 units, respectively. Investment 2 has a lump-sum cost of $3000, and it will increase the…Camille forecasts to sell 575 units of the perfume she is selling by the first week of December. At the end of the 1st week of December, she was able to disposed 500 perfumes at Php150 each. Of these 500 units, she gave a total of 20 giveaways. The total cost for each perfume is Php120. Determine Camille’s net sales volume. *4802075500 Let’s say that last November you have sold 10,000 pieces of chrysanthemum at 25 pesos each. For every piece sold, you will be given a commission of 10%. How much was your total commission? *225,00025,00010,0002.50250,000A transfer-pricing method leads to goal congruence when managers: a. act in their own best interest and the decision is in the short-term best interest of the company b. act in their own best interest and the decision is in the long-term best interest of the manager's subunit c. act in their own best interest and the decision is in the long-term best interest of the company d. always act in their own best interest
- Eastan Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $150,000. Variable processing costs are estimated to be $7 per book. The publisher plans to sell single-user access to the book for $49. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand = 4,000 - 6p, where p is the price of the e-book. (a) Build a spreadsheet model to calculate the profit/loss for a given demand. What is the demand? (b) Use Goal Seek to calculate the price that results in breakeven. If required, round your answer to two decimal places. (c) Use a data table that varies price from $50 to $400 in increments of $25 to find the price that maximizes profit. If Eastman sells the single-user access to the electronic book at a price of S it will earn…Sandeep purchased a water filter from an authorized distributor of one of the known water filter manufacturers. He was demonstrated the filter and its services by the sales manager at his home. But the sales manager never shared that the filters, which are in 5 numbers in the machine needs to be replaced every year. The cost of replacement is around ¼ the current price of the new machine. Sandeep want to file a case against thecompany, under which category this can be filed:a. Caveat Emptorb. Unfair Trade PracticeAssume Clinique expects to sell 3 million ounces of BB cream within the first year after introduction butexpects that half of those sales will come from buyers who would otherwise purchase Clinique’s moisturizer (that is, cannibalized sales). Assuming that Cliniquenormally sells 10 million ounces of moisturizer per year and that the company will incur an increase in fixed costs of $2 million during the first year of production for the BB cream, will the new product be profitable for the company? Refer to the discussion of cannibalization in Appendix 3: Marketing by the Numbers for an explanation of how to conduct this analysis. (AACSB: Written and Oral Communication; Analytical Thinking)
- The sales manager like to have seasonal prices discounted from the regular sales price. He would like to change all his product prices at the same time whenever the season changes. What is the most efficient way to do this? Create a price list called 'regular sales price list' to list the regular sales prices. Whenever Manager wants to have a seasonal price list, he will use the 'regular sales price list' as the base price list and enter a discount factor. Create a price list for the regular sales price. Create a hierarchy called 'seasonal prices' which will be based on the regular sales price list and will give time-based discounts for the season based on a factor Manager enters. Create a price list which will contain the regular sales prices. Define period and volume discounts for the seasonal prices which will contain both the validity periods for the discounts and a factor to calculate the discounts for all items. Create a price list called 'regular sales price list' to list the…XYZ Insurance Company, a relatively small general insurer, has outsourced its claims adjusting function. Now, when a claim is reported, the insurer notifies the outsource adjusting company, which then causes one of its adjusting personnel to visit the site of the loss and prepare an estimate as to the amount that will have to be paid to settle the claim. The outsource company then notifies the insurer of the amount and this is set up as a case provision in the insurer’s claim files. XYZ has indicated that the adjusting company is more specialized and has greater expertise in this area than the insurer can support in house For claims that can be settled in a straight-forward manner, the adjusting company will pay the claim and then invoice XYZ for the amount. i. Discuss the 3 potential pitfalls in the use of an adjusting company. ii. Discuss 3 advantages on the usage of an adjusting company. iii. Are these sufficient to offset any advantages disadvantages. Explain your answer. iv. You…Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $120 for a comforter. Misu wants a 30% markup on selling price. What is the most that Misu can pay for a comforter? Assume Misu Sheet wants a 30% markup on cost instead of on selling price. What is Misu's cost? Round to the nearest cent.