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Which One of the Following Is a Good Motivation Guideline

question 50

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Which one of the following is a good motivation guideline to be adopted by sales managers?

Determine the relevance of costs and benefits in make-or-buy and special order decisions.
Evaluate the financial implications of dropping a product or segment based on relevant costs and benefits.
Calculate the target costing for new products based on desired return on investment.
Assess the effect of special orders on net operating income, including considerations of variable costs, fixed costs, and capacity.

Definitions:

Equivalent Units

A technique in process costing that equates partially finished goods to a specific number of fully completed goods.

Shaping Department

A specialized division in manufacturing focused on altering raw materials into desired forms through processes like cutting, bending, or molding.

Cost Reconciliation Report

A financial document used to compare and reconcile the costs incurred with the costs allocated to products or services, often in process costing systems.

Work in Process Inventory

The cost of unfinished goods in the manufacturing process at a specific point in time.

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