CA Chapter 13 HW

CA Chapter 13 HW - MichaelBailey CostAccounting...

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Michael Bailey Cost Accounting Chapter 13 Homework Q1: 13-22 <1> <2> Q2: 13-23 <1> 2008 2009 Rev 8000000 8820000 Costs     DM Costs 2400000 2635000     MC Costs 2000000 2025000 1000000 940500     Design Costs 1200000 1212000         Total 6600000 6812500 Operating Inc. 1400000 2007500 <2> Growth     Revenue effect= 10*40000 = 400000 F *Therefore, there is a total favorable variance in the growth component of 280000. Price-recovery     Revenue effect = 2000*210 = 420000 F     Costs Meredith's strategy is product differentiation.  The D4H is distinct from competitor,  therefore in order to be success Meredith should charge a higher price for the  quality service that it brings to the table. Customer perspective : Should be included because Meredith would be able to  tell if their product differentiation is working from the customers' perspective.
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CA Chapter 13 HW - MichaelBailey CostAccounting...

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