Answer:
Actual usage of material exceeds the standard material allowed for output.
Explanation:
<em>Material quantity variance occurs when the actual quantity used to achieved a given level of output is greater or less than the standard material allowed.</em>
<em>It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price</em>
An unfavorable materials quantity occurs when the actual quantity used to achieved a given level of output is greater than the standard material allowed.
<em>It is might be an indication of wastage in the usage of materials or inefficiencies.</em>
Answer:
Reducing the costs of production.
Explanation:
New product development is a procedure that requires a huge first time cost of production. The product might need new technology and new means to produce.
For example, even just to come up with a new flavor for an already existing brand of chips, new raw materials, storage space, more labor, new tools and equipment, increased marketing cost is required. This poses an increase in cost and certainly not a decrease in the cost of production.
Answer:
Cost of asset less expected residual value
/Expected useful life (years
Explanation:
Where the depreciable amount is charged in equal amounts to each reporting period over the expected useful life of the asset, this method of calculating depreciation is known as straight line method.
The yearly percentage of cost lost through accrued depreciation in straight line method is found by following formula:
Cost of asset less expected residual value
/Expected useful life (years)
C. They should take advice from experts if they lack knowledge about certain aspects of their business.
Complete Question :
Michael is in sales meeting with a potential client. The client is interested in the
product but is concerned that the product costs 15% more than the competitor's.
How should Michael handle this sales situation?
A.) Offer the client a 20% discount.
B.) Ask the client how much he or she would be willing to pay for the product.
C.) Show the client the better warranty and quality that comes with the slightly
higher cost.
D.) Say "Thanks for your time" and leave
Answer: C.) Show the client the better warranty and quality that comes with the slightly
higher cost.
Explanation: The fact that Michael's product costs 15% more than the price of it's competitor doesn't spell the end of the deal. What Michael needs to explain and make clear to the client in the sales meeting are the vague distinctions which exists between what his own product offering and that of it's competitors. Michael needs to let the potential buyers understand and get clearly the additional offers, quality or performance associated with his own product which ultimately accounts for the higher cost of his own product.
