Suppose that Adriana’s decision was prompted mostly by the desire to receive the computer quickly. Informed that it was losing sales because of the longer time to produce and deliver its products, the management of the company producing Drantex decided to improve delivery performance by improving its internal processes. These improvements decreased the number of defective units and the time required to produce its product. Consequently, delivery time and costs both decreased, and the company was able to lower its prices on Drantex. Explain how these actions translate into strengthening the competitive position of the Drantex PC relative to the Confiar PC. Also discuss the implications for the management accounting information system.
Suppose that Adriana’s decision was prompted mostly by the desire to receive
the computer quickly. Informed that it was losing sales because of the longer
time to produce and deliver its products, the management of the company producing Drantex decided to improve delivery performance by improving its internal processes. These improvements decreased the number of defective units and
the time required to produce its product. Consequently, delivery time and costs
both decreased, and the company was able to lower its prices on Drantex.
Explain how these actions translate into strengthening the competitive position
of the Drantex PC relative to the Confiar PC. Also discuss the implications for
the management
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