MANAGERIAL ACCOUNTING-ACCESS
17th Edition
ISBN: 9781259727795
Author: HILTON
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 1RQ
To determine
Comment on the given statement.
Expert Solution & Answer
Explanation of Solution
Pricing decisions: Pricing decisions is one of the most important and required decision for the management. Pricing decisions has to be made after considering the number and variety of factors.
Every firm has to price its product higher than the product cost in a long run. But cost can be ignored, if the market for the product also is critically important for pricing the banking services.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Which statement is incorrect?
a. Information and transaction costs related to financial market transactions would be higher if there is no participation of financial intermediaries.
b. The common trait of savings banks, commercial banks, credit unions and savings and loan associations is that all of them accept deposits from SSUs and provide credit to DSUs through loans and purchases of securities.
c. Finance companies act as a factor by purchasing a firm's receivables at a discount and subsequently processing and collecting the balances of these accounts.
d. A lending company operating in the Philippines cannot charge more than 12% annual interest on the loans it grants to borrowers.
e. none of the above
Which of the following statements is false?
A.
Moral hazard is the lack of incentive to guard against risk where one is protected from its consequences.
B.
Information about a bank’s activities and financial performance is available in the bank’s financial statements.
C.
As long as everyone continues to accept the paper bills in exchange, they will have value and serve as currency.
D.
To an economist, money is the stock of assets that can be readily used to make transactions.
Which of the following is a reason for financial regulation?
a.
To ensure market dominance by strong financial institutions.
b.
The failure of any financial institution may have a serious negative impact on individuals and economies.
c.
Banks cannot be trusted.
d.
To ensure government control of the economy.
Chapter 15 Solutions
MANAGERIAL ACCOUNTING-ACCESS
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - List and briefly describe four major influences on...Ch. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Define the following terms: total revenue,...Ch. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Prob. 11RQCh. 15 - List the four common cost bases used in cost-plus...Ch. 15 - List four reasons often cited for the widespread...Ch. 15 - What is the primary disadvantage of basing the...Ch. 15 - Prob. 15RQCh. 15 - Prob. 16RQCh. 15 - Prob. 17RQCh. 15 - Explain the phrase price-led costing.Ch. 15 - Prob. 19RQCh. 15 - Prob. 20RQCh. 15 - Could tear-down methods be used effectively for...Ch. 15 - Briefly describe the time-and-material pricing...Ch. 15 - Explain the importance of the excess-capacity...Ch. 15 - Prob. 24RQCh. 15 - Describe the following approaches to pricing new...Ch. 15 - Prob. 26RQCh. 15 - Briefly explain the potential negative...Ch. 15 - Prob. 28ECh. 15 - Prob. 29ECh. 15 - Prob. 30ECh. 15 - The marginal cost, marginal revenue, and demand...Ch. 15 - Prob. 32ECh. 15 - Refer to the cost and production data for the Wave...Ch. 15 - Prob. 35ECh. 15 - The following data pertain to Royal Lighting...Ch. 15 - Prob. 37ECh. 15 - Badger Valve and Fitting Company, located in...Ch. 15 - North American Pharmaceuticals, Inc. specializes...Ch. 15 - MPE, Inc. will soon enter a very competitive...Ch. 15 - Prob. 41PCh. 15 - Prob. 42PCh. 15 - Prob. 43PCh. 15 - Alexis Kunselman, president of Pharsalia...Ch. 15 - Southern Tier Heating, Inc. installs heating...Ch. 15 - Omaha Synthetic Fibers Inc. specializes in the...Ch. 15 - Prob. 47PCh. 15 - Prob. 48CCh. 15 - Zylar Industries is a manufacturer of standard and...
Knowledge Booster
Similar questions
- Define Gearing and explain its advantages and disadvantages. Why might a bank be interested in a company’s level of gearing?arrow_forwardWhich statement is incorrect? Information and transaction costs related to financial market transactions would be higher if there is no participation of financial intermediaries. The common trait of savings banks, commercial banks, credit unions and savings and loan associations is that all of them accept deposits from SSUs and provide credit to DSUs through loans and purchases of securities. Finance companies act as a factor by purchasing a firm's receivables at a discount and subsequently processing and collecting the balances of these accounts. A lending company operating in the Philippines cannot charge more than 12% annual interest on the loans it grants to borrowers. none of the abovearrow_forwardDoes its management typically have complete control over a firm’s credit policy? As a general rule,is it more likely that a company would increase itsprofitability if it tightened or loosened its creditpolicy?arrow_forward
- In your opinion, what is the effect of the banking sector clean up on investment decisions of individuals/firms.arrow_forwardA bank that grants loans to firms in a many different lines of business: will increase its information cost and decrease its credit risk will increase both its information cost and its credit risk will decrease its information cost and decerase its credit risk will decrease its information costs and increase its credit riskarrow_forwardHow does data bias influence the culture of ethics and profitability in the financial services sector? How do you mitigate possible negative effects on the potential consumer of financial services in banking?arrow_forward
- The concept of too big to fail creates a problem for? a. Bank manager b. Regulators c. Bank managers , consumers and regulators d. Consumersarrow_forwardDistinguish between illiquidity and insolvency as it affects a bank and discuss the reasons why banks are vulnerable to these problems.arrow_forwardWhich one of the following statements is a guiding principle of financial regulation? Question 32Answer a. Regulatory measures on the senior management ensure that decisions are taken in the best interest of the bank. b. Innovation is to be discouraged in the wake of the sub-prime lending debacle. c. Strict monitoring is needed to prevent excessive profits. d. The financial regulations imposed should be proportional to the advantages that are anticipated from the regulations.arrow_forward
- Why do financial regulators have a significant impact on banks?arrow_forwardDrawing on the experience of other markets, how can the Central Bank in Zambia be made more independent You have been appointed to Head one of Zambia’s leading commercial Banks. Provide a demonstration of some of the pitfalls in poor liquidity management on the balance sheet of a commercial Bankarrow_forwardIf a bank's credit ratings decrease, How does this affect borrowers, lenders, and financial institutions? What are the implications of this downgrade to the health of the financial system?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage