The purpose of cost analysis is to arrive at a price that minimizes the buying firm’s...

Question

Question

The purpose of cost analysis is to arrive at a price that minimizes the buying firm’s...

The purpose of cost analysis is to arrive at a price that minimizes the buying firm’s costs even if it results in losses to the supplier. Question 22 options: True False

business Operations-Management

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

False

The purpose or objective is to arrive at a price that is fair and reasonable for both the Organizations involved in selling and buying as well

Add a comment

Answer 2

Similar Homework Help Questions

QUESTION 28: The optimal capital structure maximizes the firm’s value, and minimizes the WACC, in theory....

QUESTION 28: The optimal capital structure maximizes the firm’s value, and minimizes the WACC, in theory. True False
A company is considering making their own materials instead of buying them. After analysis they determine...

A company is considering making their own materials instead of buying them. After analysis they determine the costs of making the material would be: Direct Materials: $100 Direct Labor: $200 Factory Overhead: $50 They are currently buying the materials from another company for $600. The company would want to continue buying from the supplier because of their relationship and the fact that they are not skilled in making the materials. A) True B) False
The purpose of a strategy is to reduce supplier cost and increase consumer value. True False

The purpose of a strategy is to reduce supplier cost and increase consumer value. True False

Inc Costs to Inc Costs to Make Buy Calculate the total incremental cost of buying 40,000...

Inc Costs to Inc Costs to Make Buy Calculate the total incremental cost of buying 40,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? (Round cost per unit answer to 2 decimal places.) Incremental Costs to Buy Total Relevant Costs Relevant Amount Relevant Fixed Costs per Unit Total incremental cost to buy The component should manufacture or buy from the outside supplier. KInc Costs to Make Inc Costs to Buy...
Question 1 Fixed cost per unit continuously declines as production increases (within the relevant range). This...

Question 1 Fixed cost per unit continuously declines as production increases (within the relevant range). This is called economies of scale. True False Question 2 The coefficient of determination or R squared, in regression analysis, should be less than 0.75 to indicate a strong cost equation. True False Question 3 ABC Co. has fixed costs of $85,000. ABC wants to achieve an after-tax profit of $10,000. The selling price per unit is $100, and the variable cost per unit is...
D Question 8 2 pts If price is lower than average variable cost, the firm is...

D Question 8 2 pts If price is lower than average variable cost, the firm is realizing losses but should continue operating in the market. O True False Question9 2 pts If the law of one price (LOOP) is violated, arbitrage opportunities will eventually drive prices in a direction that will restore LOOP True False DQuestion 10 2 pts Revealed preferences can be either hypothetical or incentive compatible. True False

A cost minimizing firm’s production function is Q=2KL. The price of labor, w, is currently $4,...

A cost minimizing firm’s production function is Q=2KL. The price of labor, w, is currently $4, and the price of capital, r, is currently $1. At the firm’s current level of output, it has total costs of $160. Input prices change such that the wage rate is now 8 times the rental rate. The firm adjusts its input combination, but leaves total output unchanged. Answer the questions below as you solve for the cost - minimizing input combination after the...
5. The cost of producing an additional unit of output is the firm’s a. Marginal cost b. Average total cost c. Variab...

5. The cost of producing an additional unit of output is the firm’s a. Marginal cost b. Average total cost c. Variable cost d. Average variable cost 6. Which of the following equations represents a typical (generic) production function studied by economists? a. E = mc2 b. MC = (change in total costs)/(change in quantity) c. Profit = Total Revenue – Total Costs d. Q = f(K,L) e. ECON 202 = fun 7. A firm would never choose to continue...
It is July and Toyota's stock price is 16,561 on the Tokyo Stock Exchange. Your analysis...

It is July and Toyota's stock price is 16,561 on the Tokyo Stock Exchange. Your analysis suggests that Toyota's stock is overvalued and is worth 9% less than it trades for today. There are September expiration call and put options with a strike of ¥6300. The call premium is 390 per share and the put premium is ¥121 per share. The contract is for 1,000 shares. You decide to speculate on Toyota based on your analysis by buying three contracts...

What is the purpose of marginal analysis when exploring replacement of an asset? Question 18 options:...

What is the purpose of marginal analysis when exploring replacement of an asset? Question 18 options: To determine the length of time the challenger asset should be used once adopted. To estimate the cost of capital for the new asset To determine if the defender asset should be used beyond its ESL. To determine what the most appropriate tax rate for the project should be

The purpose of cost analysis is to arrive at a price that minimizes the buying firm’s...

Homework Answers

Add Answer to:
The purpose of cost analysis is to arrive at a price that minimizes the buying firm’s...

Post as a guest

Earn Coins

QUESTION 28: The optimal capital structure maximizes the firm’s value, and minimizes the WACC, in theory....

A company is considering making their own materials instead of buying them. After analysis they determine...

The purpose of a strategy is to reduce supplier cost and increase consumer value. True False

Inc Costs to Inc Costs to Make Buy Calculate the total incremental cost of buying 40,000...

Question 1 Fixed cost per unit continuously declines as production increases (within the relevant range). This...

D Question 8 2 pts If price is lower than average variable cost, the firm is...

A cost minimizing firm’s production function is Q=2KL. The price of labor, w, is currently $4,...

5. The cost of producing an additional unit of output is the firm’s a. Marginal cost b. Average total cost c. Variab...

It is July and Toyota's stock price is 16,561 on the Tokyo Stock Exchange. Your analysis...

What is the purpose of marginal analysis when exploring replacement of an asset? Question 18 options:...

The purpose of cost analysis is to arrive at a price that minimizes the buying firm’s...

Homework Answers

Add Answer to: The purpose of cost analysis is to arrive at a price that minimizes the buying firm’s...

Post as a guest

Earn Coins

Add Answer to:
The purpose of cost analysis is to arrive at a price that minimizes the buying firm’s...