Answer:
B. A strategic action because such a large plant expansion will require a major commitment of resources.
Explanation:
There are two major forms of action in business decision making: strategic and tactical. Strategic action deals with decision that require major planning and investment of resource. Strategic actions have long term implementation and effect and are difficult to reverse.
Tactical actions, on the other hand, are flexible and involves actions taken on short term basis. Tactical actions are majorly bye-product of strategic decision.
On this note, Circus Aircraft`s decision to double its plant capacity over the next two years is a strategic action because such a large plant expansion will require a major commitment of resources. And the action will not easily reversible.
Other options in the question are not totally right.
That statement is false.
They are different. Purchase discounts are given by the sellers to the buyers in order to reduce the amount that the buyers have to pay if they complete the payment within a specific period of time. Trade discount on the other hand, is given by manufacturers to the sellers or re-sellers.
Answer:
understand the position of their competitors.
Explanation:
For a business to strive in an environment where competitors are also operating it is very important to have a good understanding of position of competitors in the market place.
In the given scenario there are other other start-up firms and local shops operating in the same community.
The business has completed the segmentation and targeting processes, to ensure that they are best positioning their service within this community.
Next they will have to understand the competition's aims, strategies, and strengths in order to adequately counteract them.
Answer:
When businesses are deciding how to develop their products and services, they undertake market research. Market research can either be done by the company itself or taken from elsewhere. Having reliable market research data is essential. Basing decisions on unreliable research can be very costly to a business. For research to be reliable, it must have a high level of validity. This means that the facts and evidence gathered are accurate.
Two reasons why market research should be accurate:
Business Risks: Regular market research will be your way to check in with your current customers and potential customers to ensure that you’re still meeting their needs. If it is accurate business risks are reduced but if inaccurate, it could lead to the crash of your business.
Decision-making: The need for and importance of marketing research frequently comes up when making tough business decisions. Instead of having arbitrary criteria for the decisions you make as a business owner, you can always go back to your market research report. Based on that report, will this decision lead to more customers? Will you be able to reach more people who are likely to buy from you? Will it be clear to them that your business can meet their needs? With an accurate market research, the business can make properly informed decisions but with inaccurate market research, the business will be making unwise decisions
Answer:
Cost of ending inventory is $3,550
Revised Question:
The given question is incomplete. The complete question is as follows:
A company had the following purchases and sales during its first year of operations:
Purchases Sales
January 10: 6 units at $120
February 20: 5 units at $125
May 15: 9 units at $130
September 12: 8 units at $135
November 10: 13 units at $140
On December 31, there were 26 units remaining in ending inventory. Using the Perpetual FIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)
Explanation:
FIFO (First in First out) inventory system refers to the inventory system in which it is assumes that first purchases are the first sold goods. So for calculating the cost of ending inventory we'll calculate the value of unsold goods.
<em>Calculations:</em>
<h3> Unsold goods Cost of unsold goods</h3><h3> 13 (13 X $140) =$1820</h3><h3> 8 (8 X $135) =$1080</h3><h3><u> 5 (5 X $130) =$650</u></h3><h3>Total unsold goods 26 Total cost of unsold goods =$3,550 </h3>
So the cost of ending inventory is $3,550
