Explain the circumatances that may income to be lowen if the unprofitabile produet line is eliminated. cause ovenall company net
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- “If a product line is generating a loss, then it should be discontinued.” Do you agree? Explain.In a make-or-buy decision, a. the company must choose between expanding or dropping a product line. b. the company must choose between accepting or rejecting a special order. c. the company would consider the purchase price of the externally provided good to be relevant. d. the company would consider all fixed overhead to be irrelevant. e. None of these.Which of the following is a disadvantage of outsourcing? A. freeing up capacity B. freeing up capital C. transferring production and technology risks D. limiting ability to upsize or downsize production
- Explain why external failure costs can be more devastating to a firm than internal failure costs.Which of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier verification. c. Prototype inspection. d. Recalls.Which of the following statements are false? SELECT ALL THAT APPLY a. One of the dangers of allocating common fixed costs to a product line is that such allocations can make the line appear less profitable than it really is. b. A new fixed cost that must be paid if a special offer is accepted is not relevant in making the decision. c. A cost that will be incurred regardless of which course of action a manager takes is relevant to the manager's decision. d. Your Company is considering replacing Machine X. The original cost of Machine X is not relevant to this decision.
- Describe dropping unprofitable products or segments.Which of the following is not an example of a typical external failure cost? Multiple choice question. Product recalls Warranty repairs Debugging system errors Defective product liabilityWhich of the following is NOT a principle of lean manufacturing?a. Achieve high inventory turnover rate.b. All activities that do not add value and maximize the use ofscarce resources must be eliminated.c. Products are pushed from the production end to the customer.d. A lean manufacturing firm must have established andcooperative relationships with vendors.
- Prentice Company is considering dropping one of its product lines. What costs of the product linewould be relevant to this decision? What costs would be irrelevant?Which statement is FALSE about product-market fit? a. Even if you have product-market fit, you can lose it b. Product-market fit is not a discrete event c. Once you have product-market fit, you can ignore the competitionIdentify which of the statements below are true (T) or false (F). Lean businesses aim to: Produce many defective products.