Please use an example to explain the opportunity-cost concept and why it is used in decision-making.
Q: Distinguish between quantitative and qualitative factors in decision making.
A: Qualitative Factor:Qualitative factors are those factors which cannot be expressed in the financial…
Q: Label each of the following statements as either true (“T”) or false (“F”). An opportunity cost is…
A: Answer: True.
Q: How does the decision-maker use the scenario analysis?
A: Scenario analysis helps investors and analysts in making better decisions.
Q: Explain what is Make-or-Buy Decision?
A: Decision making: It is a vital capacity in the management, since decision making is identified with…
Q: Describe two potential problems that should be avoided in relevant-cost analysis.
A: Relevant cost are the cost that are linked to specific business decisions. They are a part of…
Q: How should managers estimate and interpretcost information?
A: Cost: It refers to the economic value incurred by a company to produce a product or deliver a…
Q: Discuss and explain the meaning of right offerings and their advantages.
A: Right issue refers to giving a right to existing shareholders to subscribe additional shares in…
Q: Explain the term supply chain and its importance to cost management?
A: Supply chain is a network of different activities, steps, processes, people, resources and…
Q: Explain the qualitative factors in decision making.
A: Qualitative factors are a result of definite actions that are complicated or impossible to…
Q: What Is Prerequisites for Successful Target and Cost-Based Pricing?
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: What is value-based management and how is it used?
A: The company finds the value of the company by discounting the cash flows occurring in the future.…
Q: Discuss the characteristics and costs of useful information. What makes information useful and what…
A: Accounting information is broad in nature and should be structured to meet the information needs of…
Q: Define recruiting and what are its representative cost driver?
A: Recruiting:Recruiting is the process of hiring qualified employees to make them work for the…
Q: How does Incremental Analysis assist Management in decision making?
A: The financial information needed for decision-making is analyzed using incremental analysis or…
Q: What is an opportunity cost and why should it be included when making decisions?
A: Opportunity costs is the costs of next best alternative foregone by accepting current alternative.…
Q: Which of the investment constraints is expected to have the most impact on your decision process?…
A: Investment constraints: These are the conditions that limit or restrict an investor's investment…
Q: Briefly explain the decision-makers emphasis and the decision-models emphasis of decision usefulness…
A: Accounting is the process of recording, analyzing, summarizing, and interpreting the financial…
Q: Explain what is meant by the term decision model.
A: Every business has to take important decisions now and then. A proper understanding of the situation…
Q: Describe the potential costs and benefits of LBOs?
A: LBO is the acquisition method where the company used to use the borrowed money in order to acquire…
Q: Define the term pricing decisions.
A: Selling Price: It refers to the price at which the product or service will be sold in the market…
Q: Why is the contribution margin an important concept forincremental decision making?
A:
Q: What is the benefit of identifying avoidable and unavoidable cost in decision making process?
A: Avoidable costs: Avoidable Costs, as the name suggests, are the costs that can be avoided of the…
Q: How can you tell the difference between planning and control decisions
A: The difference between planning and control decisions will be shown:
Q: Explain Make-or-Buy Decision?
A: Meaning: It is a decision which is made to either manufature a product or service in house ( by…
Q: Describe the Replacement Analysis using the Opportunity-Cost Approach?
A: The company always considers the replacement projects when the old machinery or plant in the project…
Q: Beside the dollar cost, what other costs should you consider when comparing alternative solutions to…
A: There could be lot of factors which are to be considered while comparing alternative solutions to a…
Q: Explain prudence concept with example.
A: Prudence principle- According to this concept, businesses should instantly recognize all future…
Q: All future costs are relevant in decision making.” Do you agree? Explain.
A: INTRODUCTION Relevant costs are the costs which are useful for decision making. It is the costs…
Q: Discuss the benefit of identifying avoidable and unavoidable cost in decision making process.
A: Benefit of Avoidable Cost 1. Avoidable cost Avoidable cost helps management in decision making…
Q: Explain the concept of contribution, its limiting factors and how it can effectively be used in…
A: INTRODUCTION: Decision-making is the process or act of determining anything using logic, intuition,…
Q: Define the Make-or-Buy Decision?
A: A make or buy decision is to choose whether to manufacture the produce in-house or purchase it from…
Q: Define value-based management
A: SOLUTION:- VBM is a concept whih refers that management should firstly consider the interest…
Q: the uses of cost information in decision making to managers
A: Cost: It is a value related to the product that determines its purchasing value. A cost, in general,…
Q: Define opportunity cost
A: Opportunity costs represent the benefits an individual, investor or business misses out onwhen…
Q: Explain what opportunity cost is. supplement the explanation with an appropriate example
A: The decision to choose one from given alternatives leads to concept of opportunity cost.
Q: Explain Prudence concept and provide example.
A: Following accounting concepts & principles are used in accounting: Business entity principle…
Q: Explain what is meant by the decision pattern ?
A: Decisions patterns is how decisions are made what is psychology behind the decision making.
Q: Describe cost constraint and materiality constraint by giving your own examples.
A: Answer
Q: Explain cost constraint and materiality constraint by giving your own examples.
A: Accounting constraints under the accounting field are boundaries or guidelines which are followed…
Q: Briefly explain the importance of distinguishing between relevant and irrelevant costs for the…
A: The costs that are affected by decision are relevant cost and those costs are not get affected are…
Q: Describe briefly the importance of Cost-Benefit Analysis in the selection or development of a…
A: Cost-benefit analysis is an approach to estimate the strengths and weaknesses of a system and…
Q: Define the term opportunity cost, and give an example of one.
A: Opportunity cost: It is the benefit which is foregone by choosing next best alternative. In mutually…
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- See questions 6A-6C in image Question 6D: Using the residual income approach, if you were in Dell Havasi’s position, would you accept or reject the new product line?The line that begins at the origin on a CVP graph represents total expenses. total fixed expenses. total sales revenues. both the total expenses and the total sales revenues. Which of the following best describes the concept of a "constraint?" Expected future costs that differ among alternatives. None of the items in this list of answers. A benefit foregone by choosing one alternative course over another. The distribution of all products to be sold.See questions 1 - 3 in image Question 4: If you were in Dell Havasi's position, would you accept or reject the new product? Question 5: Would the new line increase or decrease the company's overall ROI?
- assi C rrat Which of the following is not a factor to consider when deciding whether to accept a special order? Select one: O A. Whether this order will hurt the brand name of the company B. Whether the offered price is sufficient to cover prime costs and fixed overhead allocated C. Whether other potential orders would be more profitable D. Whether additional fixed costs would need to be incurred E. All of the aboveQuestion 2 A seminar was recently attended by the Managing Director of XYZ Manufacturing Company Limited located at Sheffield. The focus of the seminar was "optimising scarce resources utility in a manufacturing setting with particular reference to linear programming". On his return to his base, he called for a meeting with the Management to share his experience from the seminar and the impact this will have on the decision by the Board to produce two major products in the years ahead. A group of external research experts had previously been commissioned and the following represents information from the research carried out by them The expected products are "Best" and "Smart" with expected costs statistics as follows: Best £ £ Smart (3kg@£50/kg) Material costs (5kg@£50/kg) 250 150 Labour costs Machinery time 30 (4 hours @£15/Hr) 60 (4 hours @£10/hr) 40 (2hours @£15/Hr) (5hours@£10/Hr) Other Processing Time 50 The applicable pricing policy is based on total cost of production plus 20%…Which one of the following statement is not correct? Group of answer choices -Opportunity costs are only considered when resources are limited. -Break-even analysis is used to determine how many units of a product or a service a business has to sell to cover all its costs. -Both fixed and variable costs influence short-term decision-making. -Short-term decision-making is all about analysing those costs that will change as a result of taking a particular action.
- What is the major benefit of Breakeven Analysis? A. AB B. CD C. D. It allows you to know how much you have to sell to breakeven. It allows you to see the effect different methods of changing costs and prices of your products will have on profitability. It allows you to see what will happen if you lower fixed cost. It allows you to see what will happen if you increase variable cost."In target costing, prices determine costs rather than vice versa." Explain. Question content area bottom Part 1 A. In target costing, managers start with a predatory price. Then they determine how much they can spend in variable and fixed costs to breakeven. Thus, prices essentially determine costs. B. In target costing, managers start with a price that will result in breakeven. They the managers brainstorm to find ways to lower costs without raising the price to earn more profit. Thus, prices essentially determine costs. C. In target costing, managers start with a market price. Then they try to design a product with costs low enough to be profitable at that price. Thus, prices essentially determine costs. D. In target costing, managers start with a cost-plus price. Then they work backwards to determine how much their costs are for production and the markup is on the product. Thus, prices essentially determine costs.Which one of the following statement is not correct? O Both fixed and variable costs influence short-term decision-making. O Short-term decision-making is all about analysing those costs that will change as a result of taking a particular action. O Opportunity costs are only considered when resources are limited. O Break-even analysis is used to determine how many units of a product or a service a business has to sell to cover all its costs.
- What costs must gross profit cover for Superior Construction? The gross profit must cover these types of costs: Help me solve this Demodocs example Get more help P Type here to search esc DII F2 F3 F4 F5 #: $. 2 3. 4Which of the following choices correctly denotes factors that can influence a company's pricing practices for goods and services? Market Customer Conditions Costs Demand A. No Yes Yes B. No Yes No C. Yes Yes Yes D. Yes Yes No E. Yes No Yes Select one: a. Choice A b. Choice B C. Choice C Choice D Choice E d. e.Q7. a) Explain the difference between full-absorption costing and direct costing and how does absorption costing help an entrepreneur make better decision? b) “A start-up entrepreneurship does not need to develop a business plan when launching a new enterprise. All he/she need is a business idea and money to start operating.” Evaluate this statement supporting your answer with facts d) What options does an entrepreneur have if he or she becomes unhappy with the growth of the company?