| | | | | | | | Consumer behavior: Consumer behavior is the study of how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. Behavioral changes in consumers changes more often in the recession. * Recession is break down of market, increase in unemployment, reducing in house market. * When recession hits the market, first and fore mostly consumers will get affected by it. * Consumer
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inception, lean has been about cost savings. The proof can be found by going to the founder of the concept. Lean has its roots in the Toyota Production System (TPS) or just-in-time manufacturing. Taiichi Ohno, the primary architect of the TPS, suggested that its goal was reducing costs. Ohno and his consultant, Shigeo Shingo, went so far as to restructure the profit and pricing equation so that its interpretation would be different to emphasize the concept of cost reduction. Often, the selling price
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Budgeting and management control systems Individual assignment #1 – Matteo Ambrogini CASE: Cafè Xaragua Questions 1) Prepare a forecast for the first year of operations using the information provided in the case. Clearly identify your assumptions. See the frame used to analyze the case in Exhibit 1, the forecast in Exhibit 2, a breakdown of costs calculations in Exhibit 3, a breakdown of “Equipment & Fixture” costs and time allocation of all fixed costs in Exhibit 4. ASSUMPTIONS MADE (refer to
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sales. This causes the larger segments to carry more cost automatically. For Southlake, Textbooks generate the most income, however the gross profit percentage is only 26%. Clothing has one of the best gross profits and generates the 2nd most income. With traditional costing, computers are operating at a loss. Under Traditional Costing, all operating expenses are allocated by percent of sales. This causes the larger segments to carry more cost automatically. For Southlake, Textbooks generate the
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pork products. The CEO of PIGS has stated that processed pork prices exceed the costs of producing such products, and believes that because of this there is no lower of cost or market issue related to hogs being developed for processing. The hogs that cannot be easily transported and processed will be sold to third parties (not processed) at market price, which has recently declined. The supposed lower of cost or market issue is dealing with developing animals that are held for sale to third parties
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traffic locations requires catering the service to meet the demands of the customers who are looking for convenience, but at the same time, quality food. This will pose a challenge as the two are hard to achieve together without incurring significant costs. Currently, Pronto does not face significant competition for full-service Italian restaurants serving in-a-hurry diners. However, the choice of locations for Pronto puts the restaurant in direct competition with fast-food chains. Pronto will need
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Describe the advantages of budgets Budgets are an important part of a well-designed management control system. A well-designed and properly administered budget can motivate employees, provide feedback for evaluation of performance, and promote coordination between departments. Although companies still need to conduct a cost-benefit analysis to ensure that the expected benefits of a budget exceed the costs of implementing a budget, the benefits of a budget are significant. 3. Prepare the operating
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hogs and developing animals to be sold to a third party because it is believed that internally processed pork products will be able to cover the costs of live hogs and developing animals to be processed internally. Question: How should the Company determine whether an inventory impairment exists at September 30, 2002? More specifically, how should management evaluate impairment? Response: ASC 330-10-35-2 states that, “in accounting for inventories, a loss shall be recognized whenever the utility
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entrants and thereafter, analyzing the credibility of each action. There are many types of barriers to entry into a market, including factors like high capital costs, differentiated product, costs of switching, distribution network, economies of scale, suppliers, barriers to exit and legal and government created barriers. High capital cost: In an industry that demands a larger capital investment during the starting up process, it will act as a barrier to entry for most potential entrants unless
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within the last three years as a result of more affordable cellular phones as well as lower service costs. Companies are competing in an advance technology and communication sector in which success attracts customers to buy their products and services. The market is very competitive because they offer the same products and services, but has different physical attributes to the phones and different costs, which buyers have choices to choose from. Value: CVP(Customer Value Proposition) :
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