State with a brief reason, the appropriate pricing policy that should be adopted in the following situations. (Do not copy the situation into your answer books) (i) A health centre doing routine health check-up with normal facilities. (ii) A newly formed company is trying to build a unique product that it may patent. Some of the product's components, designed to specifications are outsourced to A. The

State with a brief reason, the appropriate pricing policy that should be adopted in the following situations. (Do not copy the situation into your answer books) (i) A health centre doing routine health check-up with normal facilities. (ii) A newly formed company is trying to build a unique product that it may patent. Some of the product's components, designed to specifications are outsourced to A. The

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Don't use excel or any tables, compute by a conventional method. Completely solve to fill in Blank 1, Blank 2, and Blank 3. Box the final answers. Write legibly or typewrite the solutions. A piece of production equipment is to be replaced immediately because it no longer meets quality requirements for the end product. The two best alternatives are a used piece of equipment (E1) and a new automated model (E2). The economic estimates for each are shown in the accompanying table. The MARR is 15% per year. Which alternative is preferred based on the: (a) coterminated assumption with a ten-year study period and an imputed market value for Alternative b? Use FW method. FW (E1) = $_____? FW (E2) = $_____? The best alternative is E_____?
Zaccaria Srl manufactures automotive parts. A major customer has just given Zaccaria an edict: ‘Improve quality or no more business.’ Lorenzo Da Ponte, the controller of Zaccaria, is given the task of developing a COQ programme. He seeks your advice on classifying each of items (a) to (g) as (i) a prevention cost, (ii) an appraisal cost, (iii) an internal failure cost, or (iv) an external failure cost. a Cost of inspecting products on the production line by Zaccaria quality inspectors. b Payment of travel costs for a Zaccaria customer representative to meet a customer who detected defective products. c Costs of reworking defective parts detected by Zaccaria’s quality-assurance group. d Labour cost of the product designer at Zaccaria whose task is to design components that will not break under extreme temperature variations. e Cost of automotive parts returned by customers. f Seminar costs for ‘Supplier Day’, a programme aimed at communicating to suppliers the new…
Consider the following series of independentsituations in which a firm is about to make a strategic decision.Decisionsa. A running shoe manufacturer is weighing whether to purchase leather from a cheaper supplier in orderto compete with lower priced competitors.b. An office supply store is considering adding a delivery service that its competitors do not have.c. A regional retailer is deciding whether to install self-check-out counters. This technology will reducethe number of check-out clerks required in the store.d. A local florist is considering hiring a horticulture specialist to help customers with gardening questions.1. For each decision, state whether the company is following a cost leadership or a product differentiationstrategy.2. For each decision, discuss what information the managerial accountant can provide about the sourceof competitive advantage for these firms.
A chemical engineer working for a large chemical products company was asked to make a recommendation about which of three mutually exclusive revenue alternatives should be selected for improving the marketability of personal care products used for conditioning hair, cleansing skin, removing wrinkles, etc. The alternatives (X, Y, and Z) were ranked in order of increasing initial investment and then compared by incremental rate of return analysis. The rate of return on each increment of investment was less than the company’s MARR of 17% per year. The alternative to select is: (a) DN (b) Alternative X (c) Alternative Y (d) Alternative Z
Which of the following activities should be expensedcurrently as R&D costs?(a) Testing in search for or evaluation of product orprocess alternatives.(b) Engineering follow-through in an early phase ofcommercial production.(c) Legal work in connection with patent applications orlitigation, and the sale or licensing of patents.
Storm, Inc. manufactures bicycles. Storm currently manufactures the seats used on its bikes, but is considering whether to purchase the seats from an outside supplier. Which of the following factors are relevant to Storm's decision to make the seats in-house versus purchasing the seats from an outside supplier? ABCDE A. B. D. E. O Choice A O Choice B Ⓒ Choice C O Choice D O Choice E Fixed costs avoided if buy seats from supplier Yes Yes No No Yes Selling price Storm charges for its bikes Yes No Yes No No Per-unit purchase price if buy seats from supplier Yes Yes Yes No Yes Profitable use of freed-up capacity if buy seats from supplier Yes Yes No Yes No
An automobile manufacturer has decided to allow suppliers to bid on all parts necessary to make its vehicle. What qualitative factors should be considered by management in deciding whether or not to turn over the production of a part to an outside supplier?
st K Yard Growers Corp manufactures garden tools in a factory in Taneytown, Maryland. Recently, the company designed a collection of tools for professional use rather than consumer use. Management needs to make a good decision about whether to produce this line in their existing space in Maryland, where space is available or to accept an offer from a manufacturer in Taiwan. Data conceming the decision are (Click the icon to view the data.) Read the requirements Requirement 1. Should Yard Growers Corp manufacture the 680,000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain The cost of manufacturing 680,000 garden tools in the Maryland facility is 680,000 garden tools from the Taiwan supplier is and the cost of purchasing Yard Growers Corp purchase the garden tools from the Talwan supplier because it is than the relevant costs to manufacture the garden tools in Maryland SKIP REQUIREMENT 2 Requirement 3. What are some of the qualitative factors…
Cost Allocation in Health Care Cost allocation is often the centerpiece of conflict that is resolved product line that is of interest to the plaintiff. This is particularly an issue when a company produces in court cases. The litigation usually involves the dispute over how costs are allocated to a pred product line that is of interest to the plaintiff. This is particularly an issue when a company produo some products or services for a price-competitive market while other products or services arees duced for a governmental unit on a cost-plus or reimbursement basis. Nursing Care Inc., or NCI, operates both a small nursing home and retirement home. Thre i single kitchen used to provide meals to both the nursing home and retirement home, meaning lab costs and utilities costs of the kitchen are shared by the two homes. There is also a centralized cles ing department that provides the cleaning services for both homes as well as the kitchen. The nursine home serves only indigent patients…
Clarke, Inc. manufactures door panels. Suppose Clarke, Inc. is considering spending the following amounts on a new total quality management (TQM) program: View the spending amounts. Clarke, Inc. expects the new program would save costs through the following: View the savings amounts. Requirements 1. Classify each cost as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. 2. Should Clarke, Inc. implement the new quality program? Give your reason. Requirement 1. Classify each cost as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. Type of Cost Strength-testing one item from each batch of panels Training employees in TQM Training suppliers in TQM Identifying suppliers who commit to on-time delivery of perfect-quality materials Lost profits from lost sales due to disappointed customers Rework and spoilage Inspection of raw materials Warranty costs Savings Avoid lost profits from lost sales due to…