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Scenario 4-3
El Sol sunglasses were designed by an avant-garde artist. She said there were no sunglasses out there that she would wear, so she had to design her own. Her sunglasses were worn by a whacked-out bad guy in a blockbuster movie and, because of this, have acquired a cult following among young teens. Print advertisements are visually sparse--nothing more than a still shot from the movie and a logo for the brand.
Eyewake sunglasses were designed by an optician after he realized that conventional sunglasses allowed in certain types of light that promoted eye fatigue. He made 1,000 of his sunglasses and gave 100 of them away to friends and acquaintances. After trying them out for awhile, several of them told him that they really liked them when they had to drive for extended lengths of time. He placed an ad in the back of a tourism magazine, extolling the safety benefit of driving with eyes that weren't fatigued. He promptly sold all of his remaining glasses.
Kushyspecs sunglasses were developed after research revealed that there was a small group of people who didn't like wearing sunglasses because most sunglasses left pinch marks on their noses. The company that performed the research developed sunglasses with a soft, cushiony nose piece. Advertisements for Kushyspecs feature the headline "The mark of a good pair of sunglasses is no mark at all."
-(Scenario 4-3) Which of these brands of sunglasses has a target audience selected on the basis of usage patterns and commitment levels?
Transferred-in Materials
Raw materials or components that have been moved from one stage of production to another, often accumulating costs along the way.
Equivalent Units
A concept used in cost accounting to convert partially completed goods into a number of complete units of output, facilitating cost analysis.
Conversion Cost
Conversion Cost refers to the combined expenses of labor and overhead costs required to convert raw materials into finished products.
Weighted Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale during the period.
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