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.

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…

Why might relevant costs analysis be bad for a company if used too frequently?   Multiple Choice   It overemphasizes short-term goals and neglects long-term goals.   It complicates the job of managers.   It focuses too much on strategy and not enough on financial measures.   It could lead to a permanent change in the production process of the company.   It overemphasizes long-term goals and neglects short-term goals.