Give Examples of Features That Consumers May Use as Surrogate

question 34

Essay

Give examples of features that consumers may use as surrogate indicators when purchasing products.

Understand the principles of effective management of operations to reduce costs.

Identify the importance of decision consistency concerning cost relevance.

Analyze the strategic implications of capacity utilization, bottleneck management, and joint costs in operations.

Understand the financial implications of continuing or discontinuing products based on their variable costs and traceable fixed costs.

---

Definitions:

Percentage-Of-Completion

An accounting method used to recognize revenue and expenses of long-term contracts proportionally over the life of the contract based on the degree of completion.

Efforts-Expended Method

A accounting technique used to recognize revenue proportionally to the work or effort that has been completed on a project, commonly applied in long-term contracts.

Output Measures

Metrics or indicators used to quantify the level of products or services produced by a company or an industry.

Deposit Method

A method of accounting used for transactions where the receipt or payment of money precedes the delivery of goods or services, recognizing the transaction when the delivery occurs.