In Order to Recover Its Market Share,the Management in Xenon

question 40

Multiple Choice

In order to recover its market share,the management in Xenon Inc.decide to launch a low cost line of its existing products.Which of the following arguments would most likely convince the reluctant employees of the feasibility of this strategy?

• A) Cheaper raw materials would make for a cheaper product.
• B) Competitors were offering goods at low prices.
• C) Company is currently making a product that has low demand.
• D) New technology would help mass production and price reduction.

---

Definitions:

Production Budget

is a financial plan that estimates the cost of production based on projected product volumes, including costs of materials, labor, and overhead.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated using inventory valuation methods such as FIFO, LIFO, or weighted average.

Budgeted Sales

Projected amounts of sales for a future period, used for planning and performance evaluation purposes.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and overhead.