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Paraphin [41]
3 years ago
12

As the new profit center manager, you switch carriers to a more expensive, but quicker, more responsive transportation carrier.

You justify this because when using a(n) ____________ perspective, your overall inventory and warehouse savings more than offset the increase in transportation costs. Group of answer choices lane operations economic order quantity total cost ABC
Business
1 answer:
Setler79 [48]3 years ago
3 0

Answer:

You justify this because when using a(n) _____ABC_____ perspective, your overall inventory and warehouse savings more than offset the increase in transportation costs.

Explanation:

The ABC perspective allocates overhead costs based on the cost drivers and the level of activity consumed by each cost driver.  This is the best cost allocation basis.  ABC is justified by the fact that activities consume resources or cause costs to be incurred.  As a profit center manager, your focus should be on minimizing the activities that drive up costs instead of just focusing on mere cost reduction without paying attention to the cost drivers.

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2 years ago
A person who is on property with the consent of the landowner and who brings an economic benefit to the landowner, such as a tic
timama [110]

Answer:

A business invitee

Explanation:

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7 0
3 years ago
When Tesla first launched their electric vehicles in the United States, they deviated from the norm in the automobile industry a
Damm [24]

Answer:

The choice of Tesla is known as Forward Integration.

According to the principles of Transaction Cost Economics, this is a good decision.

Explanation:

Companies sometimes take over the operations/businesses that deal with the distribution and supply of their products and or services. This move is known as forward integration.

Traditionally, companies focus on production then bring in middle-men such as Franchise owners, wholesales, dealers, and retailers to distribute their merhandise to the end user. Whilst there are associated benefits with this model, it's been found that the interests of the middle men also generate considerable costs.

In order to competitive advantage, companies are modifying their business models such that end users can deal directly with them thus reducing the final price of their goods and or services making them more accessible and easier to purchase for the consumers.

Transaction Cost Economics refers to the various ways in which an organisation can be set up in order to manage or control the costs associated with its transactions. The goal of transaction cost economics is to reduce overall costs in order to optimize profits, stay competitive and maintain growth by managing and modifying organisational structures and business models.

The most optimized organisational structure/business model is that which is able to attain the highest efficiency possible by operating at the lowest cost possible.

Good or Bad Decision

The market for motor vehicles is an oligopoly.

Therefore, price is an important factor to consider. As a more recent entrant into that space, this is very crucial for Tesla.

Tesla is not only entering into a market dominated by giants, but is also tryin to modify the way people know to drive cars (at least in most parts of the world). Therefore, it is a great move that it is going with a Price Penetration Strategy. Thus by cutting off the Franchise-Oriented dealerships and selling directly, Tesla is able to retain control over the price of it's vehicles.

The whole essence of reducing it's costs is so that it is able to make its products available to the consumers as an alternative to fossile fuel powered vehicles at the lowest cost possible. Despite it's best efforts, there are still petrol powered cars that are at least $10,000 cheaper that what Tesla is offering.

Besides price, one major factor that influences the choice to go with hybrid or 100% of electric cars is that they are clean and very environmental friendly.

Cheers!

5 0
3 years ago
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