Discuss the Two Reasons Why Managers Sometimes Price Their Products

question 140

Essay

Discuss the two reasons why managers sometimes price their products too low,thereby reducing company profits.

Recognize the significance of adaptation and homeostasis as characteristics of living organisms.

Understand the concept of biodiversity and the threats it faces.

Distinguish between the cycling of energy and chemicals in ecosystems.

Understand the various forms of social engineering and their implications.

---

Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating manufacturing overhead.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a specific activity base such as labor hours.

Direct Materials

Raw materials that can be directly traced to the production of goods, distinct because they are an integral part of the finished product.

Manufacturing Overhead

All indirect costs related to manufacturing beyond direct materials and direct labor, such as indirect labor, maintenance, and factory supplies.