A Cell Phone Maker Has Created a Digital Platform That

question 5

Multiple Choice

A cell phone maker has created a digital platform that allows it to directly interact with its customers.Customers are allowed to post their ideas regarding the features they want in the phones that the company plans to launch.What is this process of interaction between the company and its customers called?

• A)open innovation
• B)strategic partnership
• C)joint venturing
• D)customer relationship management

Analyze the implications of accepting individual customization orders on profitability.

Determine the relevance of sunk costs and their exclusion from future business decisions.

Conduct differential analysis for further processing and make or buy decisions.

Apply the variable cost concept in setting prices and calculating desired profits.

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Definitions:

Custom Jewelry

Jewelry made to a customer's specific requirements and preferences.

Job Costing System

An accounting system that tracks costs individually for each job, suitable for companies that produce unique products or jobs.

Direct Materials

Raw materials that are directly traced and are integral to the production of finished goods.

Direct Labor

The labor costs directly attributable to the production of goods or services.