Increase the promotion budget to gain greater awareness
Explanation:
- Coat's manager continues to perform well in the market competing product as strong and is looking to take over the market share leader in segment.
- The coat product manger in order to improve the buying criteria, and thus potentially increase demand the best product manager should purchased.
- Marketing and promoting is a strategy in which one can communicate the customers and target prospective customers to buy the products.
- Thus increasing the demand of the product and thereby increase the promotion budget and gain greater awareness.
Explanation:
Strategic planning is important to an organization because it provides a sense of direction and outlines measurable goals. Strategic planning is a tool that is useful for guiding day-to-day decisions and also for evaluating progress and changing approaches when moving forward.
Answer:
1. $46,550
2. $405,000
3. $450,600
Explanation:
1. Computation of differential cost regarding the decision to buy the model 200
Differential cost = Cost of a new model 300 - Cost of a new model 200
Differential cost = $396,350 - $349,800
Differential cost = $46,550
So, the differential cost regarding decision to buy model 200 is $46,550.
2. Sunk costs are the costs which are already incurred by the entity in the past and which are not relevant to decision made today. In this case, sunk cost is the cost of the machine purchased seven years ago for $405,000.
3. Opportunity cost is the profit forgone by chosen alternative course of action. In this case, the Opportunity cost regarding the decision to invest in the model 200 machine is $450,600.
Answer:
The correct answer is E)
Explanation:
Capital budgeting is an accounting method that corporations use to decide which planned acquisitions of fixed assets will be approved and which should be refused.
Some examples of Capital Expenditures include:
- Construction of an additional building
- Procurement of delivery vehicles
- Procurement of new equipment
- Rehabilitation of existing equipment
If one of the criteria for classification under Capital Expenditure is that it must be in the plan, then none of the above items mentioned in the question will fly.
Monies have already been expended on the options A, B, and C.
Option D is an offer to purchase an existing asset, not a planned investment. Therefore it also does not qualify.
Hence the correct answer is E.
Cheers!
When allocating their assets bankers take into account their reserve equipment. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated.
