Chapter 13 HW answers
4- The strategic pricing approach changes over the sales life cycle of the product. In the first and second
phase, pricing is set to be relatively high, to recover development costs and to be able to build
profitability. In the later
Chapter 4 Basic Homework Solutions
The strategic role of costing is to provide accurate cost information
that is need for product pricing, profitability analysis of products and
customers, evaluation of managers, and refinement of strategic
Chapter 2 Basic Homework Solutions
The four strategic resources are used as follows. First the firm determines the
critical success factors using SWOT analysis, and then uses execution to excel
on these CSFs.
The value chain is used to provide a more
Answers Chapter #5
1- Undercosting a product may result in managers erroneously believing the product to be
more profitable than other products and shifting the limited resource of the firm into
manufacturing, promotion and sales of the product when in fa
1- Strategic Management cost management information is needed to make sound strategic
decisions regarding choice of products, manufacturing methods, marketing techniques etc.
2- Planning and Decision making cost management informati
Chapter 3 Basic Homework Solutions
All direct costs are variable by definition since they can be directly
traced to the cost object, and thus must vary with the cost driver.
All fixed costs must be indirect, since the increase in the cost driver o
Chapter #8 Answers
2- The assumptions used in cost estimation are Linear functions can estimate cost behavior
within relevant range; other assumptions are specific to the estimation method chosen.
4- Implementation problems with cost estimation include:
Answers Chapter #6
1- Companies that will use a process costing usually have homogeneous products that pass through
a series of similar processes or departments. These companies usually engage in mass
production of a few similar products.
4- Equivalent un
Chapter 7 Basic Homework Solutions
7-21 Cost Allocation, General
1. Service and administrative costs are costs that are incurred by
headquarters' staffs or other central units. In order to maintain the
company as a functioning entity, administrative costs