Unit Costs of the Principle Product Sold by Big Auto

question 85

Essay

Unit costs of the principle product sold by Big Auto Parts Ltd. at the end of several successive accounting periods are shown in the top line of amounts below. Different units are in stock each period (none carried over). Beneath the actual cost figures are the anticipated selling prices and replacement costs of the product. Distribution costs average $12 per unit and sales commissions have averaged 10 percent of sales prices. Applying "lower-of-cost-or-NRV" determine unit inventory values for each period. $\begin{array} { | l | l | l | l | l | l | } \hline &{ \text { Period } } \\\hline & 1 & 2 & 3 & 4 & 5 \\\hline \text { Actual cost } & \$ 130 & \$ 150 & \$ 146 & \$ 152 & \$ 160 \\\hline \text { Sales prices } & 160 & 160 & 180 & 180 & 190 \\\hline \text { Replacement cost } & 150 & 150 & 154 & 146 & 162 \\\hline \text { Disposal cost } & & & & & \\\hline \text { NRV value } & & & & & \\\hline \text { Market } & & & & & \\\hline \text { Inventory value } & & & & & \\\hline\end{array}$

Recognize the role of task leadership in facilitating project completion and enhancing employee productivity.

Comprehend the distinctions between task and social leadership and their impacts on workforce morale.

Understand the principles of managing by objectives and setting specific, measurable goals.

Appreciate the contributions of human factors psychology to workplace efficiency and safety.

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Definitions:

Product

Anything offered to the market for use or consumption that might satisfy a want or need, including physical items, services, experiences, events, persons, places, properties, organizations, information, and ideas.

Buyer

An individual or organization that makes a purchase or is a potential customer for products or services.

Need Arousal

The process of stimulating interest or desire in a customer for a product or service, often through marketing or sales strategies.

Buying Decision

The process by which a consumer decides whether or not to purchase a product or service, often influenced by factors such as need, desire, and budget.