Integrated business planning (IBP), which consists of synchronizing commercial, financial and supply chain plans in a single holistic administrative process, is vital to meet the evolving requirements of modern supply chains. An advanced form of sales and operations planning (S&OP) is the IBP that is increasingly being adopted in the manufacturing, distribution and service sectors. Companies that implement IBP programs in a strategic way generally exceed 20% of gross margin on average to companies that apply S&OP in a more tactical and less integrated way.
Answer: Increasing current profits when doing so lowers the value of the company's equity.
Explanation:
The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.
When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.
If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.
<span>The cost per unit is derived from the variable costs and fixed costs incurred by a production process, divided by the number of units produced.
Hypothetically lets say variable costs for Kubin company's production is $50,000 and their fixed costs are $25,000.
$50,000 variable costs + $25,000 fixed costs / 21,500 units = $3.49/unit.</span>
