lease identify what types of companies would use market-based pricing versus what type of companies would use cost-based pricing and explain why.

Q: What is Disney’s pricing objective for adopting surge-based pricing?

A: In its United States theme parks, Walt Disney firm revealed last month a plan to follow demand…

Q: Explain how ABC can help a firm identify its true low-cost suppliers. Illustrate with some

A: Solution- Process costing is a method of cost accounting that is used to determine the cost of…

Q: nother cost-based approach to pricing is called time and material pricing. Under this approach, two…

A: Answer: Some companies--partiicularly in service industries-- use a variiation of cost and pricing…

Q: When should a company use absorption costing when setting sales prices? When should it use variable…

A: Variable Costing: "Variable costing is a method that allocates only variable manufacturing costs to…

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

A: Sunk costs are expenses that can not be retrieved if a corporation wishes to leave a market.

Q: How cost accounting helps tourism firm in determining the price?

A: Cost accounting makes the basic distinction between fixed and variable costs. This is then used by…

Q: a. The market value of the comps should be available.   b. The valuation object should be compared…

A: Share valuation is the process of determining the value of the shares based on certain factors.…

Q: Calculate Firefly Corporation's markup percentage using (a) absorption-cost pricing and (b)…

A: In order to take the pricing decisions, and formulating policies regarding cost of a product, a…

Q: a difference in cost-plus pricing and target costing is that target costing starts with the price…

A: Target costing says that first target selling price is calculated, then markup is deducted from…

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: Transfer pricing concept is used when products needs to be transferred between departments of same…

Q: In a make versus buy decision which of the following factors is not relevant? fixed production…

A: Make or buy decision:   Every company wants to maximize its net income. The best method to increase…

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: Answer 1

Q: The company manager (retail industry) stated that the company could lower its operating leverage by…

A: The operating leverage is result from the existence of fixed costs that the firm must pay to…

Q: Discuss the decisions companies face when initiating price increases.

A: Price changing decision is a part of management decision making where they decide the appropriate…

Q: What questions should managers answer when considering selling a product as is or processing…

A: Sell or process further decision rule: Sell or process further decision rule states that "if the…

Q: Determining the best approach to pricing requires a cost-benefit trade-off. Explain.

A: The best approach to pricing requires the cost benefit trade-off is explained as below, The Best…

Q: Mention any four types of pricing strategies and classify the below items the appropriate pricing…

A: Pricing policy will play an vital role in business as each product the company made needs to be…

Q: If a firm operates at capacity, the minimum transfer price should be the: external market price any…

A: Solution: If a firm operates at capacity, the minimum transfer price should be the "external market…

Q: A type of strategic pricing based on analytical methods is used to: Multiple Choice   Utilize…

A: A pricing strategy is a method used to establish the best price for a product or service.

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: With subsidies versus reduction output cuts, how will the curve shift from MPC to MSC ? / explain…

A: Endowments include the public authority paying piece of the expense to the firm; this lessens the…

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: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: In this question, we will make Income statement of Great Springs Bottled Water and find out the…

Q: When constrained by a limiting resource, managers often seek to produce those products which have:…

A: if a manager constrained by limiting resource, he can be to produce those products which have the…

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: “Managers should consider only additional revenues and separable costs when making decisions about…

A: Split off point: Split-off point is the point in production process where joint products are capable…

Q: Distinguish between the downward demand spiral and the ramifications of this for price choices

A: This question tells about  the downward demand spiral and the ramifications of this for price…

Q: What are the risks to buyers associated with each of these different types of contracts – justify…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1- What potential problems should be avoided in relevant-cost analysis?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: Note: As per the policy we are supposed to solve one question at a time. Kindly repost the further…

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: When one department of a company transfer goods to another department, the price at which goods are…

Q: 1.  why companies need to transfer price and advantages?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: “You should always choose the supplier who offers the lowest price per unit.” Do you agree? Explain.

A: Choosing a supplier doesnot solely depend on price of the unit offered by supplier. There are many…

Q: Companies should always make and sell all products whose selling prices exceed variable costs.”…

A: Contribution margin: Contribution margin is computed by deducting variable expense from revenues. It…

Q: High-end airlines compete directly with other high-end airlines. When it comes to pricing,…

A: In a competitive environment, the companies will try to outdo each other on prices and services in…

Q: if we produce goods over the capacity, should we consider the fixed marketing cost and variable…

A: Fixed marketing costs is fixed costs related with the marketing of the product and this will not be…

Q: Which of these would NOT contribute to a retailer's use of forward buy? O A. Low holding costs O B.…

A: Forward buying - When a buyer negotiates the purchase of a commodity at current price i.e., today's…

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: Which of the following is not a feature of full cost plus sales pricing related to a range of a…

A: Following is the answer to the given question

Q: Could tear-down methods be used effectively for target pricing in a service-industry company, such…

A:

Q: When negotlating a transfer price, which price is most acceptable to the selling divislon if they…

A: A company may have two or more division in which two different goods are produced and one good can…

Q: "Advise the Pricing practices or policies to be adapted for each of the items discussed below with…

A: Pricing policies are adopted by the companies to price their products according to their…

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.