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Vikki [24]
3 years ago
14

A company is considering dropping a product line. What costs would be relevant to the decision? What costs would be irrelevant?

Why? (MO 2)'
Business
1 answer:
mote1985 [20]3 years ago
6 0

Answer:

Relevant cost : Avoidable cost

Irrelevant cost : Sunk costs and future costs

Explanation:

Dropping or retaining a product line by a company depends on the effect of the product line on the net operating income of the company i.e. if the net income is decreased because of a product line then the product line should be dropped and vice versa.

<u>Relevant costs to the dropping of  a product line </u>

Avoidable costs is a relevant cost that should be considered when dropping a product line

<u>Irrelevant costs </u>

Sunk costs ( i.e. past operational costs )

and future costs

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Competitive advantage refers to:
True [87]

Answer:

d. refers to how a firm does something unique to create added value.

Explanation:

The competitive advantage is the advantage that is gained by the company over its competitors. It can be gained through various things like - reasonable product, best quality, and quantity, great services through which the customers of competitors could be the shift to the company.

The motive of this is to create some value added to the company products by considering the innovative ideas to attract the customers and maximize customer satisfaction that results to accomplish the company goals and objectives.

7 0
3 years ago
The marketing researcher for Pooch Party, a manufacturer of toys for dogs, has noticed an increased trend in pet owners dressing
otez555 [7]

Answer:

Is large enough to permit a profitable market effort toward its members.

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3 years ago
On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The in
const2013 [10]

Answer: January 26

Explanation:

A life insurance policy is simply a contract that an individual has with an insurance company whereby the individual makes premium and in turn, the insurance company would have to give a death benefit, to the beneficiaries of the insurance policy once the insured dies.

Based on the information in the question, the coverage become effective on January 26 which was the day the policy was delivered and the first premium was collected.

3 0
3 years ago
Bank ABC has checkable deposits of $415 million and total reserves of $50 million. The required reserve ratio is 9 percent. The
umka21 [38]

Answer:

$12,650,000.

Explanation:

Reserves is the total amount of a bank's deposit that is not given out as loans

Reserves = Deposits - outstanding loans

Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank

Required reserves = reserve requirement x deposits

0.09 x 415 million = 37.35 million

Excess reserves is the difference between reserves and required reserves

50 million - 37.35 million = 12.65 million  

6 0
3 years ago
Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then in the
eduard

Answer:

the answer is  d

Explanation:

Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then in the short run employment and production falls.

because workers and firms does not prepared for this change,for one hand workers  will  percieve minor wages and they prefer   not work  ,as a consequence the production falls because the firm does not have enough people t acomplish the production.

4 0
3 years ago
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