Knowing how costs behave is useful to management for all the following reasons except for
A) predicting customer demand.
B) predicting profits as sales and production volumes change.
C) estimating costs.
D) changing an existing product production.
A
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The first step in the OE/S process is typically a data flow from a(n) ______________________________
Fill in the blank(s) with correct word
Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that
A. the similarity required for sharing core competencies must be in the value chain, not in the product. B. the methods of production are the same. C. the target market is the same, even if the products are very different. D. the products use similar distribution channels.
The use of analytical review procedures applied to related expense accounts would not be used to determine if accounts payable were understated
a. True b. False Indicate whether the statement is true or false
The Waco Tire Company (WTC) is considering expanding production to meet possible increases in demand. WTC’s alternatives are to construct a new plant, expand the existing plant, or do nothing in the short run. It will cost them $1 million to build a new facility and $600,000 to expand their existing facility. The market for this particular product may expand, remain stable, or contract. ETC’s marketing department estimates the probabilities of these market outcomes as 0.30, 0.45, and 0.25, respectively. The expected revenue for each alternative is presented in the table below.
MKT expands MKT stable MKT contracts Build new plant$1,650,000 $1,000,000 $450,000 Expand plant$1,000,000 $850,000 $450,000 Do nothing$0 $0 $0 ? ? What course of action is optimal for WTC? What is the expected profit in that case? What will be an ideal response?