In deciding whether to drop its electronics product line, Smith Company should consider a. how dropping the electronics product line would affect sales of its other products. b. the costs it could save by dropping the product line. c. the revenues it would lose from dropping the product line. d. All of the above.  Q: Walkin Inc. is considering the write-down of its longtermplant because of a lack of profitability.… A: Click to see the answer Q: Top managers of Video Avenue are alarmed by their operating losses. They are considering dropping… A: The income statement determines the net income of the business by subtracting the total expenses… Q: Consider a company faced with a competitor's price reduction. Should the company also reduce price… A: Answer :- In the current scenario, The company should not reduce its selling price per unit of… Q: When deciding whether we should add or drop a product or segment, we should think about Multiple… A: When deciding whether we should add or drop a product or segment, we should think about : the… Q: The company manager (retail industry) stated that the company could lower its operating leverage by… A: The operating leverage is result from the existence of fixed costs that the firm must pay to… Q: Which of the following decreases the non-value added time of producing a product and in turn… A: Subassemblies service:It is a service offered by the manufacturer who do not have adequate time and… Q: Which of the following illustrates the concept of externalaties? OSmoking harms the health of the… A: The term "external costs," which is often referred to as "externalities," describes the economic… Q: What questions should managers answer when considering selling a product as is or processing… A: Sell or process further decision rule: Sell or process further decision rule states that "if the… Q: A manufacturing firm identified that it would have difficulty sourcing raw materials locally, so it… A: Four strategies are Risk reduction strategy,prospect theory startegy,Risk sharing strategy and risk… Q: NPV A: Introduction: NPV is one of the capital budgeting decision that is used by companies in to order to… Q: Consider a company faced with a competitor's price reduction. Should the company also reduce price… A: Click to see the answer Q: When deciding whether to sell as is or process a product further, managers should ignore which of… A: Click to see the answer Q: “If a product line is generating a loss, then it should be discontinued.” Do you agree? Explain. A: Click to see the answer Q: Samsung must confront sunk costs. Why are sunk costs irrelevant in deciding whether to sell a… A: Click to see the answer Q: Stephen, a manager, believes that if his company's revenue hadn't increased last year, it wouldn't… A: Revenue means the amount earned by selling the goods or services. Profit means the difference… Q: Companies have found that offering discounts to customers in return for early payment can be… A: Inventory management is an integral part of working capital management. Inventory is a crucial… Q: Would the pandemic and shortages could cause some companies to decide to use a different method of… A: The costing methods is the methods that helps the coampiens to identify the amount spent on the… Q: Why the answer is letter D. Company A’s lower voluntary employee turnover rate will likely increase… A: A Lower voluntary employee turnover rate stating that there are lesser employees who have been left… Q: Explain with an example why managers find it difficult to adopt a decision alternative even when the… A: Below is the answer- Q: Which of the following business strategies is most likely toincrease the net cash flows of a… A: To increase the cash flow of a software developer company in short run, expenditures may be reduced… Q: Companies have found that offering discounts to customers in return for early payment can be… A: The additional current assets that a corporation retains on its balance sheet as a liquidity buffer… Q: what if your company is being targeted by a SPAC would that be a good thing or a bad thing? What… A: Here discuss about the importance of the Special Purpose Acqusition company (SPAC) which are… Q: Which of the following is not an advantageous reason to reduce inventories? a. Inventories provide a… A: Inventories are the stocks of finished goods which are purchased, utilized as well as maintained by… Q: In deciding whether to drop its electronics product line, Smith Company should consider how… A: Click to see the answer Q: dentify each of the following risks as most likely to be systematic risk or diversifiable risk: The… A: Systematic risk is the risk which is caused by macroeconomic factors also known as market risk.… Q: Consider a company faced with a competitor's price reduction. Should the company also reduce price… A: Solution :- Expected value of perfect information (EVPI) = EMV - EV sub script PI. Q: what if in the future, it will earn a negative RCE. Is this possible for a company? Why? A: RCE = return on capital employed. ------------------------ Return on capital employed is the ratio… Q: “Since break even analysis focuses on making Zero profit, it is of no value in determining the units… A: The zero-profit indicates that a business has recovered all its fixed costs that were allocated to… Q: Blonde, Inc., is considering dropping a certain product line if it does not have a margin of safety… A: Lets understand the meaning of margin of safety. Margin of safety is a all sales over a break even… Q: Why might managers resist buying a more expensive piece of equipment, known to have a lower TCO,… A: Managers resist purchasing an extra expensive part of equipment so as to evade high initial outlay. Q: Competitors often inquire about a competitor's product's price. For a fee, iSuppli will deconstruct… A: We need to account for various expenditures incurred in the business under different heads so that a… Q: What questions should managers answer when considering dropping a product or segment? A: Drop or Keep Decision: When a product or segment of a business is costing more money than earning,… Q: Assume that you work for Greeble’s Sporting Goods, and your manager requests that you outline the… A: Memorandum analyzing whether to discontinue the Golf department. Point to consider. 1. A thorough… Knowledge Booster Learn more about Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below. In a strategy meeting, a manufacturing company’s president said, “If we raise the price of our product, the company’s break-even point will be lower.” Thefinancial vice president responded by saying, “Then we should raise our price. The company will be less likely to incur a loss.” Do you agree with the president? Why? Do you agree with the financial vice president? Why? Suppose that Adriana’s decision was prompted mostly by the desire to receivethe computer quickly. Informed that it was losing sales because of the longertime to produce and deliver its products, the management of the company producing Drantex decided to improve delivery performance by improving its internal processes. These improvements decreased the number of defective units andthe time required to produce its product. Consequently, delivery time and costsboth decreased, and the company was able to lower its prices on Drantex.Explain how these actions translate into strengthening the competitive positionof the Drantex PC relative to the Confiar PC. Also discuss the implications forthe management accounting information system. In a strategy meeting, the computer manufacturing company's president said, "If we raised the price of our product, the company's break-even point will be lower." The financial vice president responded by saying, "The company will also be less likely to incur a loss." As a management accountant would you agree or disagree with these statements and why? Peterson Corporation is considering implementing a JIT production system. The new system would reduce current average inventory levels of $2,000,000 by 75%, but it would require a much greater dependency on the company’s core suppliers for on-time deliveries and high-quality inputs. The company’s operations manager, John Leung, is opposed to the idea of a new JIT system. He is concerned that the new system (a) will be too costly to manage; (b) will result in too many stock outs; and (c) will lead to the layoff of his employees, several of whom are currently managing inventory. He believes that these layoffs will affect the morale of his entire production department. The management accountant, Susan Chow, is in favour of the new system, due to the likely result in cost savings. John wants Susan to revise her cost saving estimation because he is concerned that top management will give more weight to financial factors and not give due consideration to nonfinancial factors such as employee… When deciding whether we should add or drop a product or segment, we should think about Multiple Choice the product's or segment's traceable costs the impact of dropping the existing product or segment on the remaining products' or segments' sales all of the above are true whether the freed up capacity (from dropping a product or segment) will bring us additional revenue When deciding whether to sell as is or process a product further, managers should ignore which of the following? The costs of processing the product thus far The cost of processing further The revenue if the product is sold as-is The revenue if the product is processed further SEE MORE QUESTIONS Recommended textbooks for you Principles of Accounting Volume 2 ISBN:9781947172609 Author:OpenStax Publisher:OpenStax College Managerial Accounting: The Cornerstone of Busines... ISBN:9781337115773 Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger Publisher:Cengage Learning Financial And Managerial Accounting ISBN:9781337902663 Author:WARREN, Carl S. Publisher:Cengage Learning, Managerial Accounting ISBN:9781337912020 Author:Carl Warren, Ph.d. Cma William B. Tayler Publisher:South-Western College Pub Cornerstones of Financial Accounting ISBN:9781337690881 Author:Jay Rich, Jeff Jones Publisher:Cengage Learning Cornerstones of Cost Management (Cornerstones Ser... ISBN:9781305970663 Author:Don R. Hansen, Maryanne M. Mowen Publisher:Cengage Learning Principles of Accounting Volume 2 ISBN:9781947172609 Author:OpenStax Publisher:OpenStax College Managerial Accounting: The Cornerstone of Busines... ISBN:9781337115773 Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger Publisher:Cengage Learning Financial And Managerial Accounting ISBN:9781337902663 Author:WARREN, Carl S. Publisher:Cengage Learning, Managerial Accounting ISBN:9781337912020 Author:Carl Warren, Ph.d. Cma William B. Tayler Publisher:South-Western College Pub Cornerstones of Financial Accounting ISBN:9781337690881 Author:Jay Rich, Jeff Jones Publisher:Cengage Learning Cornerstones of Cost Management (Cornerstones Ser... ISBN:9781305970663 Author:Don R. Hansen, Maryanne M. Mowen Publisher:Cengage Learning |
In deciding whether to drop its electronics product line, a companys manager should ignore
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