None Kenya Power, the primary electricity distributor in Kenya, faces the challenge of providing affordable and reliableelectricity to a diverse customer base with varying consumption patterns and income levels. The company's pricingstrategy has come under scrutiny due to the potential for price discrimination, which could lead to inequitabledistribution of electricity and reduced access for low-income households. REQUIRED; Describe how Kenya Power canimplement a pricing strategy that takes into account the diverse needs and income levels of its customers, while alsoensuring that the company remains financially viable and maintains a fair and equitable distribution of electricity?

Kenya Power might implement an all-encompassing pricing plan to solve the problem of offering…

Answered: Kenya Power, the primary electricity…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4CMA: Morrisons Plastics Division, a profit center, sells its products to external customers as well as to...

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Bulldogs Inc. wants to enter the global market. Which one may not be the reason in such decision? Production efficiency in other countries may result to economies and synergies that are favorable to the company To seek technologies not yet present in the home country To broaden market and increase shareholder value Essential materials and labor rates may be more expensive in other countries
Morrisons Plastics Division, a profit center, sells its products to external customers as well as to other internal profit centers. Which one of the following circumstances would justify the Plastics Division selling a product internally to another profit center at a price that is below the market-based transfer price? a. The buying unit has excess capacity. b. The selling unit is operating at full capacity. c. Routine sales commissions and collection costs would be avoided. d. The profit centers managers are evaluated on the basis of unit operating income.
Which statements are TRUE? 1. Minimum wage laws check the problem of purchasing power of income and solve income inequality. 2. In developing countries, demographic transition was slower than in developed countries. 3. Rural-urban migration can be prevented primarily through provision of free education. 4. Agglomeration refers to the coming together of firms whose products are correlated in a location thus allowing for the coming together of their workers. 5. Prisoner’s Dilemma takes place when the actions taken by one firm gives the incentives for other agents to take similar action.
a) Compare and contrast variable cost-plus pricing and target pricing, and indicate the circumstances in which each might be appropriate. b) Compute the selling price based on the compay’s pricing policy and indicate whether the customer’s maximum price is consistent with the company’s pricing policy. c) Assume that further tests have confirmed the product’s useful life, and that SA Berhad wishes to maximise profits by reducing costs. Indicate techniques which could be used to achieve a reduction in the product cost. d) Define Business Process Re-engineering (BPR).
NUBD's X Division is currently purchasing a part from an outside supplier. The company's Y Division, which has excess capacity, makes and sells this part for external customers at a variable cost of P22 and a selling price of P34. If Y begins sales to X, it (1) will use the general transfer-pricing rule and (2) will be able to reduce variable cost on internal transfers by P2. If sales to outsiders will not be affected, Y would establish a transfer price of:
SFS manufactures and sells a range of products. It is not dominant in the market in which it operates and, as a result, it has to accept the market price for each of its products. The company is keen to ensure that it continues to compete and earn satisfactory profit at each stage throughout a product's life cycle. REQUIRED: Distinguish how SFS could use Target Costing and Kaizen Costing to improve its future performance. Your answer should include an explanation of the differences between Target Costing and Kaizen Costing.
"Companies with labor incentive manufacturing processes are most likely to benefit from sending manufacturing operations overseas because the bulk of potential cost savings relate to labor costs".Question: Identify relevant and irrelevant costs and benefits in a decision. (Note: Samsung Manufacturing)
When an MFI transforms, it must take a more sophisticated approach to pricing its products and services than it took as a credit-focused NGO or project. Clearly explain how the MFI considers cost, competition and profitability targets when they are pricing their products
STATE the most appropriate pricing policy to be adopted in the following independent situations: (Situations need not be copied. Only policy name is required.) (1) The company manufactures original equipment and does railways contract work. Other companies are also there in the market who also undertake similar projects. (ii) Patented Drug for COVID 19 ready to be launched in the market. A bike manufacturer is launching an innovative, technologically advanced bike in the highly priced segment. (iv) A company making a variant of sanitizers, trying to enter the market. The same varieties of sanitizers are already successfully capturing the market.
XYZcompany (US Based) is facing resistance in their growth as it has high sales cost structure. what should be done within the company in order to drive change in the region?
As a Marketer it is challenging to understand Consumer Behavior in today’s fast growing and competitive world because it is complex and dynamic in nature. However, please briefly explain which factors affects or influence consumer behavior along examples with reference to the Pakistani context.
Does your current/future company price discriminate? Explain how the practice works (direct or indirect) and estimate the profit consequences of price discrimination relative to charging a single, uniform price. If your current/future company doesn't price discriminate, are there opportunities to do so? How would you design the price discrimination?

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