explain how sunk costs create a barrier to entry into the market place.

Q: For technical analysis, based on patterns of historical prices, to have value, ______ form of market…

A: Weak form efficiency market hypothesis is an element of efficient market hypothesis which states…

Q: What are joint costs? How do they affect the sell or process further decision?

A:

Q: How does the lower of cost or market relate to profit margins?

A: Answer: The lower cost or market implies that, depending on how historical costs and market costs…

Q: Explain the difference between price-takers and price-setters.

A: When a company cannot dictate prices then it is known as price taker. On the contrary, when a…

Q: Which of the following best describes an "opportunity cost"?     Expected future costs that differ…

A: Introduction: Opportunity cost: Cost for the opportunity lost called opportunity cost.

Q: What is lower of cost/market, and why is it used? Provide an example.

A: Inventory is a term which depicts the amount of finished goods prevailing in the business. The…

Q: Which of following is a disadvantage of outsourcing

A: “The deliberate use of outside services to conduct tasks typically performed by internal personnel…

Q: Which of the statement is not a true reflection of Target cost gap ?   The target cost gap =…

A: target costing is the way in which deriving of a target cost is done to set the production manager…

Q: Explain whether the following statements are valid or not valid: A. Target costing ignores non-value…

A: Target costing is an costing technique in which it was the difference between targeted sales minus…

Q: Can a company use a target pricing model without a follow-on cost-savings sharing agreement? Why or…

A: Target price is the price at which the stock future price is estimated grounded on earnings…

Q: Using the concept of substitution and income effect, explain why means-tested transfer programs…

A: The income effect  is basically the shift in consumer consumption of items as a result of  income…

Q: Define the term make-or-buy (or outsourcing) analysis?

A: Make or buy: purchasing of goods from the outside vendors is called outsourcing.

Q: Which of these costs is considered as the most important cost because if it is not met, an…

A: A company income statement will report the net income as the total revenue in excess of the total…

Q: What are the optimal prices and profits for selling the goods seperately?

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Which of the following is the disadvantage of using FIFO method. a. The assumed flow of costs…

A: Lets understand the FIFO method and their advantages and disadvantages. As the name suggest, First…

Q: What are the pitfalls of franchising?

A: Franchising is a licensing that one party takes from the business owner. It allow that party to…

Q: According to our authors, explain the concept of “lower-of-cost-or-market.”

A: When a company prepares its financial statement, it reports certain items in the financial statement…

Q: Given the weaknesses of cost-based pricing, why wouldany company use this method?

A: Cost-based pricing means setting prices based on the cost of goods and services.  The major…

Q: Why can cost benefit analysis be difficult to carry out?

A: Introduction: Cost benefit analysis can be defined as a process which is undertaken by an…

Q: Which of the following is a disadvantage of outsourcing? Group of answer choices A. freeing up…

A: A very common outsourcing scenario is the decision of a company to produce a component that is…

Q: Why is fixed costs changing?

A: In the given problem some estimates related to selling price and cost to be incurred are given and…

Q: What are the advantages and disadvantages of target pricing versus cost-based pricing?

A: Advantages of target pricing are as follows: It help in controlling in cost It provide profit with…

Q: Which of the following costs are irrelevant to business decisions? Avoidable costs Costs that…

A: Sunk costs are irrelevant to business decisions.

Q: Give an example on the Sell or process further and solve it

A: Sell or process further is a Managerial decision taken by considering factors like cost, sales…

Q: Why is reduce inventory cost is an advantage of inventory outsourcing?

A: Inventory is defined as the goods as well as materials, which has the business holding for an…

Q: Monopolists sometimes practice price discrimination to O a. get rid of surplus product. O b,…

A: Correct answer:Option d:Increase profit

Q: Discuss how non-production and production cost could affect the profitability

A: Introduction:- Cost are classified into two types based on cost types as follows under:- Non…

Q: Understand and apply the lower-of-cost-or-market rule.

A: Cost: It is the economic value incurred by an organization to produce a product or render a service.

Q: Explain why sunk costs are not considered in the analysis ofinvestment alternatives.

A: A sunk cost is also known as the retrospective cost, is a cost that cannot be recovered because it…

Q: Define competitive disadvantage costs.

A:

Q: Why do you think that having a price structure important?

A: Pricing strategies are the methods companies use to price products and services. Almost all…

Q: The potential benefit of one alternative that is lost by choosing another is known as a. An…

A:

Q: Which of the following costs can be ignored when making a decision? a. Opportunity costs. b.…

A: Sunk cost can be ignored when making a decision. It is irrelevant cost for decision making.  Sunk…

Q: What is one potential limitation of full-cost-based transfer prices?

A: Full cost based transfer pricing means transfer price based on total product cost per unit which…

Q: In what sense is the WACC an average cost? A marginal cost?

A: Weighted average cost of capital is the firm's cost of capital which is based on proportion of each…

Q: When comparing the lower of cost to market the appropriate market value is determined before…

A: The inventory costing approach known as the lower-of-cost-or-market (LCM) values inventory at the…

Q: What are direct out-of-pocket costs

A: There are various types of costs, some of which may be reimbursed and others that may not be. Direct…

Q: What are the disadvantages of outsourcing? (BUY)

A: Outsourcing: Outsourcing refers to hiring another company, to undertake a business process of the…

Q: hould the costs be historical (embedded)costs or new (marginal) costs?

A: Historical cost is the original cost at which an asset was purchased by corporation and used in the…

Q: What are the disadvantages of cutting expenses and costs , when it comes to working capital and…

A: Working Capital Working Capital is treated as one of the important element of the business entity…

Q: _______________ are the costs associated with not choosing the other alternative Sunk costs

A: Relevant costs: These are  the costs which are  relevant to a decision