Why might managers resist buying a more expensive piece of equipment, known to have a lower TCO, than a less expensive item?

Q: A weakness associated with cost-based pricing methods is that they do not allow for primary…

A: The cost based  pricing method is a method of pricing which is used to price the commodity face on…

Q: IBe the relevant costs in evaluating whether to accept an order at a special price. Provide an…

A: Managers must often evaluate whether a special order should be accepted, and if the order is…

Q: Why is diversification considered “good” by most professionals? Can you think of a situation where…

A: Investment means engaging your funds to generate income for the future. Risk and return are two…

Q: What is the chief drawback of the high-low method of cost estimation? What problem could an outlier…

A:

Q: “The inspection point is the key to the allocation of spoilage costs.” Do you agree? Explain.

A: Spoilage: Spoilage is the defective item at intermediate or final stage. The spoilage goods cannot…

Q: When is the material quantity unfavorable? A.When the actual quantity used is less than the…

A: Material quantity variance =(AQ-SQ)×SP Where as,  AQ = actual quantity used SQ = standard or…

Q: Marginal costing can provide useful information for decision-making. However, there are limitations…

A: There are various limitations of marginal costing few of them are stated below.

Q: What factors can contribute to unsuccessful budgeting? How can these situations be avoided?

A: Introduction: Budgeting is a collection of tasks done to plan a budget. A budget is a quantitative…

Q: Which of the following is not a reason for stockpiling? Lūtfen birini seçin: a. Minimize holding…

A: Stock piling refers to the process of keeping inventory in bulk. It is an attempt to produce at…

Q: You need to briefly describe the “Margin of Safety”. Do companies typically want to maximize or…

A: The margin of Safety - MOS is the difference between actual sales and break-even sales. The margin…

Q: Which of the following statements is not correct? Multiple Choice   Price discrimination is the…

A: The objective of the question is to identify the incorrect statement among the given options related…

Q: part of a process happen without negatively impacting another part? What are some reasons for erring…

A: Lean methodology eliminates waste to the core in a process and ensures that reduction in delays…

Q: What would cause an unfavorable price variance? When the actual usage is greater than the standard…

A: The price variance is calculated by the formula: Where,

Q: Company X sees a disruption in its supply chain at the same time it sees a decrease in customer…

A: A supply chain network is an organization of individuals, associations, and exercises that move an…

Q: Why do proponents of variable costing prefer variable costing when making pricing decisions?

A: Definition:   Variable costing: It refers to the method of product costing in which the price of the…

Q: Which of the following performance measures will increase if inventory decreases and all else…

A: Return on investment measures the net earned on the assets employed by the business.

Q: As a result of cost distortion, some products will be overcosted while other products will be…

A: Solution: Cost distortions occurs when the overhead costs are not properly allocated,  when the…

Q: What are some costs associated with high inventories? With lowinventories?

A: Cost associated with inventories are also known as inventory cost. Inventory cost can be classified…

Q: Which of the following is not a reason why conflicts of interest may not be harmful? Conflicts of…

A: Conflicts of interest can indeed lead to synergies, lower prices for consumers, and more efficient…

Q: What questions should managers answer when considering special pricing orders?

A: Definition:   Special Pricing: When businesses get Special orders from its customers for bulk…

Q: Anticipate TWO (2) drawbacks from the adverse selection on financial safety nets.

A: Financial Safety Nets- A financial safety net is not one savings account or an insurance guideline.…

Q: A fast-follower strategy is likely to require A. licensing the pioneer's technology B. exploiting…

A: The best business strategy for a particular company will depend on different factors such as the…

Q: Explain why all costs are controllable by someone at some time but in the short run some costs may…

A: Cost accounting: The process of identifying, calculating and recording the cost related to the…

Q: decrease in variable cost

A: Break even point is the level of sales at which an entity begins to generate profit. Break even…

Q: Why is it often difficult for the averageinvestor to take advantage of underpricing?

A: Under Pricing of the stock refers to the situation when the current market price of the company’s…

Q: Capacity planning has to be done well in advance. If the demand exceeds capacity it can lead to lost…

A: Capacity planning is considered a strategic decision because it has a significant impact on a…

Q: 19. An adverse material usage variance together with a favourable materials price variance could…

A: The answer is Option (a)  [i.e, We are paying less for our materials than expected but we are using…

Q: Explain why planning and distributing a mass-market system release is costly.

A: It is Extremely Expensive. Mass marketing is extremely expensive form of marketing and it is usually…

Q: An inaccurate estimate of asset needs can have serious consequences. Explain how?

A: Estimates of assets:  Estimate of assets is the estimated worth of assets of original worth of…

Q: In your opinion, where should companies spend most of their quality funds: on prevention,…

A: Firstly we need to understand following Costs: Prevention costs: These are incurred in preventing…

Q: Do you think it is realistic for a smaller company to reach and enjoy this beneficial negative CCC?

A: CCC CCC stands for cash conversion cycle. It refers to the time taken in days by a business to…

Q: Consider variance analysis in a service industry. Is it a good thing to use or a bad thing to use?…

A: Variance analysis in a service industry involves the systematic comparison of actual performance…

Q: Cite a specific example of non-value added activity that can be eliminated in a particular industry.…

A: NVA activities are tasks that do not add to the shape or function of the market. Filing, copying,…

Q: If a company chooses to minimize WACC, what will be the effect on financial flexibility

A: Basic Terms :- Financial flexibility of the firm is the ability of the firm's capital structure to…

Q: Does your current/future company price discriminate? Explain how the practice works (direct or…

A: Price discrimination is a market strategy in which the vendor charges varying prices for the same…

Q: What strategy has the greatest chance of creating large losses? A. Writing a covered call B.…

A: A covered straddle is an options strategy that helps to earn profit from bullish price movements by…

Q: Future costs that do not differ among the alternatives are not relevant in a decision. True or False…

A: A expense that is anticipated to be incurred in the future is referred to as a future cost. It is…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.