this process is the set of activities in a business which brings about the exchange of goods or services with customers for cash
What is Revenue Process
100
all manufacturing costs that are not classified as direct materials or direct labor
What is Manufacturing Overhead
100
this type of competition in which the market determines the selling price, the individual company is a price taker
What is Pure Competition
100
setting an initial low price to entice people to try the product and to gain a market share (legal)
What is Penetration Pricing
100
past costs, never relevant to short-term decisions
What is Sunk Costs
200
this process consists of these four primary activities: - Determine the need for goods/services
- Select suppliers and order goods/services
- Receive goods/services
- Pay suppliers of goods/services
What is Expenditure Process
200
expected amount and cost of direct labor and manufacturing overhead required to meet production projections
What is Direct Labor and Manufacturing Overhead Budget
200
in this type of competition the market has a large influence on selling price, the individual company must distinguish itself through quality, service, or functionality
What is Monopolistic Competition
200
setting an initial low price to drive out the competition and then raise prices once the market is controlled (unethical and possibly illegal)
What is Predatory Pricing
200
benefit foregone, always relevant to short-term decisions
What is Opportunity Costs
300
this process takes raw materials and through either manufacturing or service processes makes valuable products
What is Conversion Process
300
the cost of direct materials on hand; increases when direct materials are purchased; decreases when direct materials are issued into production
What is Direct materials inventory
300
this type of competition is rare since so few companies compete in this environment because the government monitors selling prices
What is Oligopoly
300
setting the selling price high because a small proportion of our customers are willing to pay a higher price in order to be the first to have our product (legal)
What is Skimming Pricing
300
additional cost (revenue) associated with a decision, relevant if the amount differs among alternatives
What is Incremental costs (and revenues)
400
goods in transit should be reported as inventory by the seller, since technically the sale does not occur until the goods reach the destination
What is FOB Destination
400
this cost varies with the number of units produced
What is Unit-Related Costs
400
this type of competition is when only one company operates in this environment, selling prices must be approved by the appropriate regulatory agency
What is Monopoly
400
setting the selling price high to take advantage of a temporary increase in demand (unethical and possibly illegal)
What is Price Gouging
400
costs that are not dependent on the level of goods or services produced by the business and stay constant(lights, rent)
What is Fixed Costs
500
goods in transit should be reported as a purchase and as an inventory by the buyer
What is FOB Shipping Point
500
this cost varies with the number of product lines
What is Product-Sustaining Costs
500
which type of competition is the company IBM most likely
What is Monopoly
500
setting a selling price that can be maintained over the life cycle of the product by first determining cost, then adding a markup to determine selling price
What is Life Cycle Pricing
500
those costs that vary depending on a company's production volume