Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Textbook Question
Chapter 11, Problem 12E
The following series of statements or phrases are associated with product life-cycle viewpoints. Identify whether each one is associated with the marketing, production, or customer viewpoint. Where possible, identify the particular characteristic being described. If the statement or phrase fits more than one viewpoint, label it as interactive. Explain the interaction.
- a. Sales are increasing at an increasing rate.
- b. The cost of maintaining the product after it is purchased.
- c. The product is losing market acceptance and sales are beginning to decrease.
- d. A design is chosen to minimize post-purchase costs.
- e. Ninety percent or more of the costs are committed during the development stage.
- f. The length of time that the product serves the needs of a customer.
- g. All the costs associated with a product for its entire life cycle.
- h. The time in which a product generates revenue for a company.
- i. Profits tend to reach peak levels during this stage.
- j. Customers have the lowest price sensitivity during this stage.
- k. Describes the general sales pattern of a product as it passes through distinct life-cycle stages.
- l. The concern is with product performance and price.
- m. Actions taken so that life-cycle profits are maximized.
- n. Emphasizes internal activities that are needed to develop, produce, market, and service products.
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Question 2
A seminar was recently attended by the Managing Director of XYZ Manufacturing Company
Limited located at Sheffield. The focus of the seminar was "optimising scarce resources
utility in a manufacturing setting with particular reference to linear programming". On his
return to his base, he called for a meeting with the Management to share his experience
from the seminar and the impact this will have on the decision by the Board to produce two
major products in the years ahead.
A group of external research experts had previously been commissioned and the following
represents information from the research carried out by them
The expected products are "Best" and "Smart" with expected costs statistics as follows:
Best
£
£
Smart
(3kg@£50/kg)
Material costs
(5kg@£50/kg)
250
150
Labour costs
Machinery time
30
(4 hours @£15/Hr) 60
(4 hours @£10/hr) 40
(2hours @£15/Hr)
(5hours@£10/Hr)
Other Processing Time
50
The applicable pricing policy is based on total cost of production plus 20%…
Which of the following decreases the non-value added time of producing a product and in turn increases the quality of the product?a. Redesigning products b. Increasing movements of subassemblies c. Adding processes in production d. Increasing time spent on delivery of products
Knowing how costs behave to change in the level of activity is useful to management for all the following reasons except for:
predicting customer demand.
predicting profits as sales and production volumes change.
estimating costs.
changing an existing product production.
Chapter 11 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 11 - What does it mean to obtain a competitive...Ch. 11 - What is customer value? How is customer value...Ch. 11 - Prob. 3DQCh. 11 - What are organizational and operational...Ch. 11 - What is the difference between a structural cost...Ch. 11 - What is value-chain analysis? What role does it...Ch. 11 - Prob. 7DQCh. 11 - What are the three viewpoints of product life...Ch. 11 - What are the four stages of the marketing life...Ch. 11 - Prob. 10DQ
Ch. 11 - What are the four stages of the consumption life...Ch. 11 - Life-cycle cost reduction is best achieved during...Ch. 11 - Prob. 13DQCh. 11 - Prob. 14DQCh. 11 - Prob. 15DQCh. 11 - Woodruff Company is currently producing a...Ch. 11 - Ventana Company is a car window repair and...Ch. 11 - Deeds Company sells custom-made machine parts to...Ch. 11 - Kagle design engineers are in the process of...Ch. 11 - Hepworth Company has implemented a JIT system and...Ch. 11 - Keith Golding has decided to purchase a personal...Ch. 11 - Prob. 7ECh. 11 - Classify the following cost drivers as structural,...Ch. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Assign the customer-related activity costs to each...Ch. 11 - The following series of statements or phrases are...Ch. 11 - Assume that a company has recently switched to JIT...Ch. 11 - Prob. 14ECh. 11 - Potter Company has installed a JIT purchasing and...Ch. 11 - Potter Company has installed a JIT purchasing and...Ch. 11 - Potter Company has installed a JIT purchasing and...Ch. 11 - Prob. 18ECh. 11 - Which of the following is a true statement about...Ch. 11 - Prob. 20ECh. 11 - This year, Hassell Company will ship 4,000,000...Ch. 11 - Prob. 22ECh. 11 - The second stage of customer-based activity-based...Ch. 11 - Evans, Inc., has a unit-based costing system....Ch. 11 - Cortalo, Inc., manufactures riding lawn mowers....Ch. 11 - Moss Manufacturing produces several types of...Ch. 11 - Maxwell Company produces a variety of kitchen...Ch. 11 - Prob. 28PCh. 11 - Nico Parts, Inc., produces electronic products...Ch. 11 - Jolene Askew, manager of Feagan Company, has...Ch. 11 - Homer Manufacturing produces different models of...Ch. 11 - Mott Company recently implemented a JIT...Ch. 11 - Southward Company has implemented a JIT flexible...Ch. 11 - Prob. 34P
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Product Life Cycle Explained | Apple iPhone & Coca Cola Examples; Author: Two Teachers;https://www.youtube.com/watch?v=ob5KWs3I3aY;License: Standard Youtube License