Mention the activities of the Incorporation, BP which will be most valuable to the weeding couple and compare these to its cost and also state the activities that will be given greater attention in time and cost and also which requires less time and cost.

Question

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Answer 1

Question

Chapter 13, Problem 44P

1.

To determine

Mention the activities of the Incorporation, BP which will be most valuable to the weeding couple and compare these to its cost and also state the activities that will be given greater attention in time and cost and also which requires less time and cost.

1.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The profit margin is the ratio of the profit (sales minus all expenses) of an enterprise divided by its revenue. It relates profit with sales and informs how well the company overall handles its finances. It's often expressed as a percent.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

2.

To determine

Mention some business and competitive issues that will be taken into account in considering the activities that are most valuable to the Incorporation, BP.

2.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

A drawback from the above assessment is that there are some costs of taking the pictures on the wedding day (additional lighting, backup cameras, and equipment, etc.) which can make it hard to cut the price of this activity. The main take-away from the interpretation is to pay more attention to the planning meeting; when done carefully, it can make a significant contribution to the fulfillment of the couple with the photos and thus undoubtedly to the quality of the wedding photo book.

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Answer 2

Question

Chapter 13, Problem 44P

1.

To determine

Mention the activities of the Incorporation, BP which will be most valuable to the weeding couple and compare these to its cost and also state the activities that will be given greater attention in time and cost and also which requires less time and cost.

1.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The profit margin is the ratio of the profit (sales minus all expenses) of an enterprise divided by its revenue. It relates profit with sales and informs how well the company overall handles its finances. It's often expressed as a percent.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

2.

To determine

Mention some business and competitive issues that will be taken into account in considering the activities that are most valuable to the Incorporation, BP.

2.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

A drawback from the above assessment is that there are some costs of taking the pictures on the wedding day (additional lighting, backup cameras, and equipment, etc.) which can make it hard to cut the price of this activity. The main take-away from the interpretation is to pay more attention to the planning meeting; when done carefully, it can make a significant contribution to the fulfillment of the couple with the photos and thus undoubtedly to the quality of the wedding photo book.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 13, Problem 44P

1.

To determine

Mention the activities of the Incorporation, BP which will be most valuable to the weeding couple and compare these to its cost and also state the activities that will be given greater attention in time and cost and also which requires less time and cost.

1.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The profit margin is the ratio of the profit (sales minus all expenses) of an enterprise divided by its revenue. It relates profit with sales and informs how well the company overall handles its finances. It's often expressed as a percent.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

2.

To determine

Mention some business and competitive issues that will be taken into account in considering the activities that are most valuable to the Incorporation, BP.

2.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

A drawback from the above assessment is that there are some costs of taking the pictures on the wedding day (additional lighting, backup cameras, and equipment, etc.) which can make it hard to cut the price of this activity. The main take-away from the interpretation is to pay more attention to the planning meeting; when done carefully, it can make a significant contribution to the fulfillment of the couple with the photos and thus undoubtedly to the quality of the wedding photo book.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 13, Problem 44P

1.

To determine

Mention the activities of the Incorporation, BP which will be most valuable to the weeding couple and compare these to its cost and also state the activities that will be given greater attention in time and cost and also which requires less time and cost.

1.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The profit margin is the ratio of the profit (sales minus all expenses) of an enterprise divided by its revenue. It relates profit with sales and informs how well the company overall handles its finances. It's often expressed as a percent.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

2.

To determine

Mention some business and competitive issues that will be taken into account in considering the activities that are most valuable to the Incorporation, BP.

2.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

A drawback from the above assessment is that there are some costs of taking the pictures on the wedding day (additional lighting, backup cameras, and equipment, etc.) which can make it hard to cut the price of this activity. The main take-away from the interpretation is to pay more attention to the planning meeting; when done carefully, it can make a significant contribution to the fulfillment of the couple with the photos and thus undoubtedly to the quality of the wedding photo book.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 44P

1.

To determine

Mention the activities of the Incorporation, BP which will be most valuable to the weeding couple and compare these to its cost and also state the activities that will be given greater attention in time and cost and also which requires less time and cost.

1.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The profit margin is the ratio of the profit (sales minus all expenses) of an enterprise divided by its revenue. It relates profit with sales and informs how well the company overall handles its finances. It's often expressed as a percent.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

2.

To determine

Mention some business and competitive issues that will be taken into account in considering the activities that are most valuable to the Incorporation, BP.

2.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

A drawback from the above assessment is that there are some costs of taking the pictures on the wedding day (additional lighting, backup cameras, and equipment, etc.) which can make it hard to cut the price of this activity. The main take-away from the interpretation is to pay more attention to the planning meeting; when done carefully, it can make a significant contribution to the fulfillment of the couple with the photos and thus undoubtedly to the quality of the wedding photo book.

Answer 6

Chapter 13, Problem 44P

1.

To determine

Mention the activities of the Incorporation, BP which will be most valuable to the weeding couple and compare these to its cost and also state the activities that will be given greater attention in time and cost and also which requires less time and cost.

1.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The profit margin is the ratio of the profit (sales minus all expenses) of an enterprise divided by its revenue. It relates profit with sales and informs how well the company overall handles its finances. It's often expressed as a percent.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

Answer 7

Chapter 13, Problem 44P

1.

To determine

Mention the activities of the Incorporation, BP which will be most valuable to the weeding couple and compare these to its cost and also state the activities that will be given greater attention in time and cost and also which requires less time and cost.

Answer 8

1.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The profit margin is the ratio of the profit (sales minus all expenses) of an enterprise divided by its revenue. It relates profit with sales and informs how well the company overall handles its finances. It's often expressed as a percent.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

2.

To determine

Mention some business and competitive issues that will be taken into account in considering the activities that are most valuable to the Incorporation, BP.

2.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

A drawback from the above assessment is that there are some costs of taking the pictures on the wedding day (additional lighting, backup cameras, and equipment, etc.) which can make it hard to cut the price of this activity. The main take-away from the interpretation is to pay more attention to the planning meeting; when done carefully, it can make a significant contribution to the fulfillment of the couple with the photos and thus undoubtedly to the quality of the wedding photo book.

Answer 13

2.

To determine

Mention some business and competitive issues that will be taken into account in considering the activities that are most valuable to the Incorporation, BP.

Answer 14

2.

Expert Solution

Explanation of Solution

A technique in which, given a competitive market price, the company determines the allowable (i.e., target) cost of the product or service, so the company can earn a desired profit. The cost life cycle is a series of the company's activities that initiate with research and development followed by design, production, sales / marketing, and customer services.

The formula to calculate the target cost is as follows:

Target cost = Competitive price – Desired profit

Quality function deployment (QFD) is value integration of marketing, engineering, analysis, and targeted costing to help determine which product components should be targeted for redesign.

The QFD analysis shows that Incorporation, BP should actually spend more time and money on the planning meeting and less on the wedding day photography to put their costs more in line with the client's criteria.

	Customer
Criteria	Rating	Percent
Fast Service	30	10.0%
Getting Good Photos	120	40.0%
Quality of Photo Finishing	60	20.0%
Quality of Photo Books	90	30.0%
	300	100.0%
Activities	Target Cost	Percent
Planning Meeting	$ 800	16.0%
Take Photos	2,400	48.0%
Prepare Proofs	600	12.0%
Prepare Photo Book	1,200	24.0%
	$ 5,000	100.0%
Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality
Planning Meeting	30%	40%	0%	35%
Take Photos	5%	60%	0%	15%
Prepare Proofs	35%	0%	50%	0%
Prepare Photo Book	30%	0%	50%	50%
	100%	100%	100%	100%

Activity/Criteria	Fast Service	Good Photos	Finishing	Book Quality	Importance Index
Criteria Value	10%	40%	20%	30%	100%
Planning Meeting	3%	16%	0%	10.5%	29.50%
Take Photos	0.5%	24%	0%	4.5%	29.00%
Prepare Proofs	3.5%	0%	10%	0%	13.50%
Prepare Photo Book	3%	0%	10%	15%	28.00%
					100.00%
Comparison of Cost and Value
	Importance Index	Cost Index	Value Index Ratio
Planning Meeting	29.50%	16.00%	1.84	Spend More
Take Photos	29.00%	48.00%	0.60	Spend Less
Prepare Proofs	13.50%	12.00%	1.13	No clear action
Prepare Photo Book	28.00%	24.00%	1.17	No clear action
	100.00%	100.00%

A drawback from the above assessment is that there are some costs of taking the pictures on the wedding day (additional lighting, backup cameras, and equipment, etc.) which can make it hard to cut the price of this activity. The main take-away from the interpretation is to pay more attention to the planning meeting; when done carefully, it can make a significant contribution to the fulfillment of the couple with the photos and thus undoubtedly to the quality of the wedding photo book.