Hi, can you find pro and cons on this statement? And please explain in detail. Production surpluses and shortages can be managed by managing fluctuating demand
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Hi, can you find pro and cons on this statement? And please explain in detail.
Production surpluses and shortages can be managed by managing fluctuating demand
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- Define price elasticity of demand. Give an example of a product with relatively elastic demand and an example of a product with relatively inelastic demand. (Give examples not given in the text.)Is this statement true or false? Can you please explain in detail. There is a difference between the theoretical production capacity and the actual output as demand fluctuates, resulting in differences in standardised cost price per unitExplain why the standard costing system may have limited benefit in times of rapid change and uncertainty such as the recent past with major supply chain and price variations occurring constantly
- The following sentences relate to achieving the financial goal of cost minimization. Which of the following statements is FALSE? a. Prioritizing which costs to incur relates to the operating decisions of the firm only.b. Savings is the end product of this financial goal.c. There is a need to determine cost.d. Controling costs involves addressing unfavorable cost variances.When constrained by a limiting resource, managers often seek to produce those products which have: Question options: a)The highest selling prices. b)The lowest average cost per unit. c)The highest contribution margin ratios. d)The highest contribution margin per unit of limiting resource.Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis? a.what is the impact on the break-even point of an increase or decrease in fixed costs b.how many units must be sold to break even c.the identification of price and efficiency variances d.the ability to conduct sensitivity analysis of cost or price changes
- The margin of safety can be defined as the excess of budgeted sales over: break-even sales. net income. fixed costs. variable costs.QuestionKnowing how costs behave to change in the level of activity is useful to management for all the following reasons except for: predicting customer demand. predicting profits as sales and production volumes change. estimating costs. changing an existing product production.Capacity planning has to be done well in advance. If the demand exceeds capacity it can lead to lost sales. Why is capacity planning a strategic decision?
- 1- What potential problems should be avoided in relevant-cost analysis? 2- Describe life-cycle budgeting and life-cycle costing and when companies should use these techniques. 3- Describe three alternatives of cost-plus pricing methods? 4- Why is it important to distinguish cost incurrence from locked-in cost? 5- How do companies determine target costs?From the sensitivity analysis discussed in the given problem. Capstone's managers are convinced that the NPW is most sensitive to changes in unit price. Determine the unit price to break even.Why might managers find a flexible-budget analysis more informative than a static-budget analysis?