Let p be the number of pounds of peanuts and c the number of pounds of cashews
If a 100-pound mix is to sell for $3.30 per pound
Then the total value of the mix would be $3.30 x 100 = $330,
so we have
2.80*p + 5.30*c = 330 ------ (1)
We also know that the total mix is 100 pounds, so:
p + c = 100 ------------- (2)
Solving these system of equations we have that c=20 and p =100 - c from
(2)
p = 80 pound of peanuts
The implementation and maintenance of an activity-based costing system may outweigh costs greater than the benefits obtained (option B)
<h3>What is the Activity Based Costing System?</h3>
The ABC (Activity Based Costing) is a model that allows the allocation and distribution of the different indirect costs, according to the activities carried out, since these are the ones that actually generate costs.
This system arises from the need to solve the problem that standard costs normally present, when they do not faithfully reflect the added value chain in the production of a specific product or service, and therefore, it is not possible to adequately determine the price.
According to the above definition, it can be inferred that this costing system is not the most efficient because it can result in implementation and maintenance may outweigh costs over profits or benefits.
Note: This question is incomplete because the options are missing. Here are the options:
- will always be higher than
- may outweigh
- will always be less than
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The firm must ensure upgrading the departments core competencies through making sure that employees have the innate ability or skills demanded.
Firms that adopt the Cost leadership strategy does so to earn higher returns and competitive advantages through of offering of products at lowest prices in the market.
The core competencies in manufacturing and logistics includes pro-activeness, ability to handle documents properly, strategic thinking, forward thinking, logical decision-making, networking abilities etc
However, the firm must ensure upgrading the departments core competencies through making sure that employees have the innate ability or skills demanded.
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Answer:
Correct option is (e)
Explanation:
There are three levels of distribution intensities: intensive, selective and exclusive. Intensive distribution is when producer covers all possible distribution channels to make the product available. Selective distribution is when the producer selects a few distributors to make the product available particularly to a target customer that the producer has already identified.
Exclusive distribution is done for high end brands where only selective distributors are involved so as to make the product exclusive and not available in abundance. This type of distribution is done for products that are limited edition or unique in nature.
So Anbinh fashion should choose exclusive distribution for its one of a kind designer jewelry.