Answer:
A. can use CVP by focusing on measuring the organization's output
Explanation:
Service companies and not-for-profit organizations can use CVP by focusing on measuring the organization's output.
Cost Volume Profit Analysis bothers on the profitability of company's output, whether it be a product manufacturing company or a service-rendering company.
In the case of a service company, Cost Volume Profit will be computed as: Profit = Service Price - Cost to provide service.
Answer:
D. estimate price elasticity of demand by experimenting with different prices.
Explanation:
Price elasticity of demand is an economic concept which is a measure of the sensitivity of customers willingness to buy something to its price. If the customers readily change their buying behavior with a change in price of the product, it would mean that the demand for the product is elastic.
When firms are introducing new products, they generally determine the best selling price by experimenting with different prices and observing the buying behavior of customers. Then the choose the price which produces the maximum amount of revenue for the firm, which entails the price of the product and number of units sold.
Answer: Ford manufactures a car in Michigan, but uses parts sourced from 27 countries
Explanation:
Globalization is the process by which businesses or organizations develop international influence or a situation whereby they start operating on international scale.
Globalization of production has to do with the producers of final finished goods relocating and moving to other parts of the world in order to source for the necessary raw materials or equipments needed to complete a product and assemble all of them at their facility.
Based on this definition, Ford manufactures a car in Michigan, but uses parts sourced from 27 countries is the right answer.
There is a movement up along an existing supply curve
