Assume You Have Recently Accepted a Position as Cost Accountant

question 87

Essay

Assume you have recently accepted a position as cost accountant for a large manufacturing company.The sales manager approaches you immediately about a particular product the company sells and expresses his belief that the product is overpriced and impossible to sell unless you do something to make it more marketable.You are not aware of any environmental or technology issues with the product that would inhibit its sales.Discuss four things you would do to investigate the concern expressed by the sales manager.Include more than just cost issues in your discussion.

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Definitions:

Supply and Demand

Fundamental economic concepts describing the relationship between the availability of products and the desires of consumers, dictating the price of goods and services.

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Truth in Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and costs.

Truth in Savings Act

A federal law designed to promote fairness and transparency in the savings account practices of banks and other financial institutions.