Though Most Universities Are Nonprofit Organizations, They Are Engaged in Marketing

question 110

Essay

Though most universities are nonprofit organizations, they are engaged in marketing strategy choices, just like businesses. For example, universities must decide whether they should increase or decrease product mix breadth, or increase or decrease product line depth. Using your university, describe a real or plausible example of each of these four potential changes.

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.

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Definitions:

Unearned Revenue

Money received by a company for goods or services that have yet to be provided to the customer.

Accrued Wages

Salaries or wages that have been earned by employees but have not yet been paid by the company.

Net Income

What a company ultimately earns in profit once expenses and taxes are removed from its total income.

Adjusting Entries

Journal entries made in the accounting records to correct or update financial information before the preparation of financial statements.