Why might managers resist buying a more expensive piece of equipment, known to have a lower TCO, than a less expensive item?

Q: Which of the following is false regarding activity-based costing (ABC)?      a. Companies that have…

A: Activity based costing is a type and method of costing methodology, in which all indirect costs or…

Q: In terms of costing, how would car makers will solve the problem of having cheap cars dissapear?

A: Manufacturing processes area unit generally complicated and consume giant amounts of resources.…

Q: The cost of lost future sales after a customer finds a defect in a product is which type of quality…

A: a) Prevention costs: Prevention costs are incurred to avoid quality problems and are incurred to…

Q: Why is diversification considered “good” by most professionals? Can you think of a situation where…

A: Investment means engaging your funds to generate income for the future. Risk and return are two…

Q: Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis? a.what is the impact on…

A: SOLUTION- CVP ANALYSIS IS USED TO DETERMINE HOW CHANGES IN COSTS AND VOLUME EFFECTS A COMPANY'S…

Q: hat way can the use of ROI as a performance measure for investment centers lead to bad decisions?…

A: ROI is the return on investment in which the there is consideration for the current year profit only…

Q: Possible Risks of Maintaining Fewer Suppliers?

A: Suppliers are the persons from which business purchase goods and supplies to be sold. Business…

Q: The cost of lost future sales after a customer finds a defect in a product is which type of quality…

A:

Q: What is meant by the statement, ‘‘Inventories camouflage production problems and can cause…

A: Production: Production activity consist use of fixed and variable resources to produce final…

Q: Which of the following explains why managers compare the budgeted costs to actual costs?   a.…

A: Managers measures budgeted expenses at the end of the year and provide an average of the costs that…

Q: What is a possible break-even analysis scenario in the resturant industry?

A: Break-Even Point (BEP)- The calculation of Break-even is a common business practice to be informed…

Q: Why does the high cost of the system negatively impact the organization's bottom line?

A: The question is based on the concept of bottom line of a company and its relationship with high cost

Q: minimize overall risk

A: A manager has to make different decisions related to choosing a project.  A project giving a higher…

Q: What are some costs associated with high inventories? With lowinventories?

A: Cost associated with inventories are also known as inventory cost. Inventory cost can be classified…

Q: Why are some quality costs hard to measure?

A: Quality Cost: The quality cost refers to the costs associated with the prevention and detection of…

Q: Management may be tempted to overproduce a. when using variable costing, in order to increase net…

A: Answer: Management may be tempted to overproduce Correct answer is option (c ) c. when using…

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 should managers worry about product overcosting or undercosting?

A: A product is said to be over costing when it consumes low level of resources but is reported to have…

Q: Why do companies that implement Lean Production tend to have minimal inventories?

A:

Q: In your opinion, where should companies spend most of their quality funds: on prevention,…

A: Firstly we need to understand following Costs: Prevention costs: These are incurred in preventing…

Q: Do you think it is realistic for a smaller company to reach and enjoy this beneficial negative CCC?

A: CCC CCC stands for cash conversion cycle. It refers to the time taken in days by a business to…

Q: Which of these efforts or actions (i.e., changing values) requires managing quality, i.e., decrease…

A: Product production comprises all operations associated to the creation of a deliverable product,…

Q: Prepare a report from Mary Jane to Don explaining how these changes will affect Mirabel’s overall…

A: The changes whether in sales price or the costs which are associated with the manufacturing of…

Q: Would the pandemic and shortages could cause some companies to decide to use a different method of…

A: The costing methods is the methods that helps the coampiens to identify the amount spent on the…

Q: With the use of activity based cost, is eliminating cheap cars will solve the problem from cost of…

A: The activity-based costing or ABC system is a method of accounting used to calculate the total cost…

Q: Should companies completely avoid high-risk projects?

A: When we talk about risks involved in a project, then that risk can be of many types. Risks related…

Q: Explain with an example why managers find it difficult to adopt a decision alternative even when the…

A: Below is the answer-

Q: All of the following should be considered in a make-or-buy decision except a. quality issues with…

A: The company's aim will be to increase the profitability of the company. The profits can be arrived…

Q: Which of the following is not an advantageous reason to reduce inventories? a. Inventories provide a…

A: Inventories are the stocks of finished goods which are purchased, utilized as well as maintained by…

Q: How can poor quality be expensive to the firm, especially if low-cost raw materials are used to…

A: The final objective of Cost Accounting is to reduce cost. Every firm wants to reduce cost thereby…

Q: what if in the future, it will earn a negative RCE. Is this possible for a company? Why?

A: RCE = return on capital employed. ------------------------ Return on capital employed is the ratio…

Q: Why might a manager exhibit a behavioral tendency to inappropriately consider sunk costs in making a…

A: Sunk Costs: Sunk costs are those costs incurred in the past and it cannot be changed unless if any…

Q: Critics of absorption costing have increasingly emphasized its potential for leading to undesirable…

A: Absorption Costing: The absorption costing is a method used to allocate the fixed manufacturing…

Q: Why have some described the reported savings in cost-avoidance measures as “soft,” “funny money,”…

A: The company using the process to reduces the cost that increases the profit is known as cost…

Q: The lower the cost in investment, the more likely people will be able to enter the market. TRUE OR…

A: Investment involves allocating money in different asset classes or securities with the expectation…

Q: What questions should managers answer when considering dropping a product or segment?

A: Drop or Keep Decision: When a product or segment of a business is costing more money than earning,…

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.