In reviewing Smith's assessments and conclusions, has he proposed the optimal recommendations? Specifically: 1. The UK Manufacturing UK LTD is facing an array of issues that require a sound understanding of cost behaviour, process manufacturing, and capacity utilization, and market pricing pressures. Identify both internal and external issues that the UKM Senior management must consider their impact on their planning for 2023 and beyond? 2. There are few reasons in cost calculation that caused the 2023
In reviewing Smith's assessments and conclusions, has he proposed the optimal recommendations? Specifically: 1. The UK Manufacturing UK LTD is facing an array of issues that require a sound understanding of cost behaviour, process manufacturing, and capacity utilization, and market pricing pressures. Identify both internal and external issues that the UKM Senior management must consider their impact on their planning for 2023 and beyond? 2. There are few reasons in cost calculation that caused the 2023
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What are the drivers of
Transcribed Image Text:Discussion issues
In reviewing Smith's assessments and conclusions, has he proposed
the optimal recommendations? Specifically:
1. The UK Manufacturing UK LTD is facing an array of issues that
require a sound understanding of cost behaviour, process
manufacturing, and capacity utilization, and market pricing
pressures. Identify both internal and external issues that the
UKM Senior management must consider their impact on their
planning for 2023 and beyond?
2. There are few reasons in cost calculation that caused the 2023
SPX512 product cost to drop by £227 after reflecting the ABC
review and the new costing approach? Did spending decrease
or just shift? List those costs with supporting numbers.
3.
What are the drivers of manufacturing cost? Of product cost?
4. Was it practical or plausible to reduce direct wafer fabrication
by 34 per cent or £23m?
5. Should Smith have looked at areas other than wafer
fabrication to identify further cost reductions?
6. Why is there still underutilized manufacturing capacity when
the SPx256 is being manufactured? Is the pricing model in fact
too aggressive?
7. What pricing advantages does UKM's competitor, Top
Telecommunicating Plc, have, knowing their TT256 has 33 per
cent more die/wafer than the SPx256? (Assume the same
wafer, probe, assembly and test costs and yields as the
SPX256)
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