acquisition and labor are avoided hence the high cost incurred by Samsung to

Acquisition and labor are avoided hence the high cost

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acquisition and labor are avoided hence the high cost incurred by Samsung to produce its products will be reduced. Once the cost is reduced, the profitability scheme is increased and the successful progress of the company is undoubted. Also, standard costing will reduce the problems that arise in the manufacturing process of the mobile devices and therefore ensure smooth working procedures of the company. Cost Plus Concept and Samsung Future Plans
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SASMSUNG COMPETITIVE CHALLENGE 4 Cost-plus concepts entailing product pricing should also be considered of great benefit to Samsung Company. The cost-plus concept generally focuses on adding markups to the cost of the goods to arrive at a fixed selling price. The plans are significant to Samsung inc as it will be in a position to land into a fixed pricing strategy for its mobile devices. To achieve, the price of the mobile device, the cost-plus concept adds direct material cost, direct labor cost and overhead cost for the product and eventually adds the results to the markup percentage to obtain the price of the product. Arguably, Samsung Company requires a fixed set price that accounts for all the material cost, overhead cost, and labor costs to avoid working on a loss. The problem can only be resolved through the application of a cost-plus pricing strategy (Vergara, 2012). The cost concept will help in deciding on how the product will be sold taking into consideration all the cost and the targeted profit. The profit gained will act as the driving force towards the expansion decision made by the company. Every minute, Samsung Company is focusing on core strategies of expansion since its main aim to capture the attention and the market of the technology devices.
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  • Spring '17
  • Dr. Hassan
  • Cost Accounting, Samsung company, rising cost of the components

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