BA+178+Final+Exam+A+Summer+2007+Solutions

BA+178+Final+Exam+A+Summer+2007+Solutions - Solutions to...

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Solutions to Final Exam A, Summer 2007 Part A (40 points) 1. A 11. A 2. C 12. C 3. B 13. B 4. C 14. A 5. B 15. D 6. A 16. A 7. C 17. A 8. B 18. C 9. C 19. B 10. A 20. C Part B (40 points, 2 of 3 @ 20) 1. Reduces rework and scrap cost Increases process efficiency Lowers warranty and service costs and Lower costs result in higher profits for the firm. 2. Only appropriate for a few select products with universal appeal (e.g., soft drinks, alcoholic beverages, household items such as detergents). Also can be used for some artistic products (music, movies) and services (Starbuck’s). Even when widespread use is possible some modification to local tastes and customs and language will usually be required. Different media also will often have to be used to reach the same target market. 3. Transfer pricing = the prices charged on goods and services transferred between affiliates of the same firm Used to shift income among affiliates, reduce taxes, and move funds between units. To reduce the total corporate
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This note was uploaded on 12/31/2009 for the course BIZ 178 taught by Professor Meford during the Fall '09 term at University of California, Berkeley.

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BA+178+Final+Exam+A+Summer+2007+Solutions - Solutions to...

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