Although Every Manager in an Organization Needs to Observe the Outside

question 119

Essay

Although every manager in an organization needs to observe the outside environment,marketers have two advantages.What are those two advantages?

Calculate and analyze direct material variances, including price and quantity variances.

Interpret the significance of favorable and unfavorable variances in cost control.

Apply standard hours and standard machine-hours as bases for overhead application.

Recognize the role of direct labor-hours in variable overhead application.

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Definitions:

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit gained from an investment by the cost of the investment.

Selling Price

The amount a customer pays to purchase a product or service, determined by various factors including cost, competition, and demand.

Target Costing

A pricing method that starts with a market-based price point and then deduces the allowable cost to maintain profitability.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated as a percentage of the investment's return relative to its cost.