A mission is abroad declaration of an organization's purpose that identifies the organization's products and customers and distinguishes the organization from its competitors.
Sometimes this is confused with vision. The vision is where the organization wants to be 5 - 10 years from now.
Calculation of Direct Material Budget for the month of July:
Budgeted production (Units) for July 5,000
Material required per unit (pounds) 3
Material requirement for July (pounds) = (5000 units * 3 pounds) 15,000
Add: Ending material inventory (5300 units * 3 pounds* 30%) 4,770
Less: Beginning material inventory 4,500
Direct Material Purchase (Pounds) (15000+4770-4500) = 15,270
Cost per pound of Metrial ($) $6.00
Direct Material Purchase ($) (15270 pounds * $6) = $91,620
Explain the effects of each of the following factors on the market price and quantity of cell phones available in the market:
An increase in consumers’ income = if there is an increase in consumers income, there may be a decrease in the cell phones available for purchase because more people would have money to purchase phones. If more people are willing and able to purchase phones, the market price may increase on the device.
Technical improvements that reduce production costs = If production costs of the devices go down, the market price may decrease making the phones more affordable. If phones become more affordable and decrease in price, the quantity sold may rise to reflect the change.
A sharp decline in the cost of making fixed-line calls = if the cost of making fixed-line calls decreases, there may not be any change to the market price of phones however their may be an increase in quantity sold.
