All categories

3 years ago

which one of Porter's generic strategies is achieved by constructing efficient, large-scale facilities

Business

1 answer:

dem82 [27]3 years ago

3 0

Answer: Overall Cost Leadership

Explanation:

Porter posited that one way a company can attain a competitive advantage in an industry is by overall cost leadership.

This means that the company needs to be able to produce goods and services in a cheaper and more efficient way than its competitors because then it can sell its products for cheaper prices and capture more market share.

One way of achieving cost leadership is by constructing efficient, large-scale facilities that will enable the company to take advantage of economies of scale and achieve less costs per unit.

You might be interested in

8. Hayward Industries manufactures dining chairs and tables. The following information is available: Dining ChairsTablesTotal Co

Contact [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Dining Chairs - Tables - Total cost

Machine setups: 200 - 600 - $48,000

Inspections: 250 - 470 - $72,000

Labor hours: 2,600 - 2,400

A) A single overhead rate:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (48,000 + 72,000) / (2,600 + 2,400)= $24 per direct labor hour

Now, we can allocate overhead based on direct labor hours:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Dining Chairs:

Allocated MOH= 24*2,600= $62,400

Tables:

Allocated MOH= 24*2,400= $57,600

B) We have to calculate an overhead rate for each activity cost pool.

<u>Overhead rate:</u>

Machine setups:

Estimated manufacturing overhead rate= 48,000/800= $60 per machine hour set up

Inspections:

Estimated manufacturing overhead rate= 72,000/ 720= $100 per inspection

Based on the overhead rate, we can allocate overhead to each product.

Dining chairs:

Allocated MOH= 60* 200 + 100*250= $37,000

Tables:

Allocated MOH= 60*600 + 100*470= $83,000

C) We can conclude that activity cost allocation is more accurate than using a single rate plant-wide. We can allocate costs more efficiently.

7 0

3 years ago

Future Clothes Inc., a publicly traded company, designs and manufactures wearable technology. What approach should Future Clothe

olganol [36]

Answer:

The interpretation of the discussion is characterized throughout the explanation segment below.

Explanation:

Concentrate on an investigation as well as implementation or enhancement as something with a category or manner of price-free competitive advantage.
With more than just related diversification, there is much less inflationary pressure as well as the corporation or manufacturer should start concentrating on non-price competitive advantage throughout the opportunity to expand mostly on the supply chain.

So the answer here is just the appropriate one.

5 0

3 years ago

Will Jones, LLP is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $50

tino4ka555 [31]

Answer:$3,500, $4, 500 $5,500=$13,500

Explanation:

A) Given that annual fee is $500 and %tax return=10%

we have that

Mega Tax software when 300 returns are filed

we have Annual fees=$500.00

Variable fees (300 x 10)=3,000.00

Costof return= $ 3,500.00

Mega Tax software when 400 returns are filed

we have Annual fees= $500.00

Variable fees (400 x 10)= 4,000.00

Cost of return= $4,500.00

Mega Tax software when 500 returns are filed

we have our Annual fees=$500

Variable fees (500 x 10)= 5,000.00

Cost of return=$5,500.00

Total cost of return for Mega Tax software = 3,500+4500+5,500=$13,500

4 0

3 years ago

Airbase is a consumer electronics company known for its affordable mobile devices that follows a cost-leadership strategy. In th

lapo4ka [179]

Answer: 4. a consumer electronics company popular among price-conscious customers.

Explanation: Companies who thread a cost-leadership strategy or path could be said to be 'price-centric', that is gives price huge cognizance and will strive to be a market or industry leader when it comes to giving best and most affordable prices on products.

Thus, since Airbase follows a cost leadership strategy and also popular among consumers for its affordable devices, it should also weigh or compare it's strategy to other consumer electronics company which is popular among consumers which gives cognizance to price of products they purchase.

5 0

3 years ago

The year-end financial statements of Greenway Company contained the following elements and corresponding amounts: Assets = $23,0

aleksandr82 [10.1K]

The correct answer is a

5 0

3 years ago