When a firm redesigns a product to reduce the number of component parts, the firm is Group of answer choices decreasing non-value-added costs. decreasing product variety. increasing consumer value. increasing the value added to the product.

Select a manufacturing organization for justifying the following quote “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”. Q. Identify the 1) Relevant Costs of the decision mentioned above. 2) Irrelevant Costs of the decision mentioned above. 3) Benefits in such a decision for the company, as mentioned above in the quote.

2) Demand for refinements to the costing system has accelerated due to A) increase in direct costs B) decrease in product diversity C) decrease in indirect costs D) competition in product markets

Carizick Co manufactures gaming products. It has created a new games console called the QpBox which is about to be launched. Demand for the QpBox is anticipated to be high. The product life cycle of the QpBox is expected to be three years with 300,000 units forecast to be sold during its first year. Sales volumes are expected to decrease by 75,000 units in each subsequent year. Production volumes will be based on expected demand levels. The following costs for the QpBox have been determined: Design and development Pre-launch advertising Advertising in Year 2 Packaging Manufacturing cost $120m $0.5m $0.4m $3 per unit $80 per unit At a recent board meeting, the finance director said that Carizick Co should look to maximise the profitability of the QpBox over its life cycle. The marketing director made the comment that Carizick Co should focus on extending the maturity phase of the life cycle only as this stage is where the QpBox is most profitable. Contract with Zone Co Carizick Co has…