This cost is entirely independent of the level of capacity meaning that theoreti
ID: 2532434 • Letter: T
Question
This cost is entirely independent of the level of capacity meaning that theoretically, all companies in the industry, regardless of size or complexity, should have the same level of this expense. What is this cost? A. Facility-sustaining B. Committed C. Business-sustaining D. Flexible Companies may resist or delay the introduction of a new product that will severely cut into the sales of their existing products. Take for example, the slow reactions of IBM and Digital Equipment to personal computers and powerful workstations. Which type of organizational capability do the preceding facts represent? A. External integration B. Experimentation C. Cannibalization D. Flexibility Which of the following is not a flaw of applying discounted cash flow procedures in practice? A. Managers require payback over arbitrarily short time periods. B. Managers use excessively high discount rates. C. Managers adjust inappropriately for risk. D. Managers emphasize global rather than incremental opportunities. For a particular situation, we have found that the probability of a non-random variance is 0.30. The cost of investigating any variance is $100. The cost of correcting a problem is $200 but the cost of not correcting a problem for one period is $400. Using this information, solve for the following: A. B. C. $70 $70 $160 $160 E(DNI $120 $280 $120 $280 0.50 0.25 0.50 0.25Explanation / Answer
Option D: Flexible Costs is that costs almost similar to fixed cost which incurr irrespective of the level of capacity whether in process or not.
Option C: Cannibalization it is a marketing strategy which refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.
Option D:Managers using higher discount rates is not a flaw being the returns can be deviated from budgeted to actual hence using an estimated higher discount rates is a good option