ACTG 2300 Lecture 11: Day 11 Notes
7 Feb 2017
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Traditional and abc for short term business decisions. Assume that there is no time value of money: today is worth the same as in 10 years. When you have a problem, must figure out what the problem is referring to. Dropping product: product seems to make a loss, not profitable. Special order: accept or reject, customers are asking for a price that is lower than the regular price. Processing further: can always work on product to improve it and sell for higher price, at what point does it make sense to stop improving and start selling. Make or buy: internal or outsource, can be a part of the process, or could be intermediate product/part/material/etc. Mix of products: display this product or that product, ex: certain amount of machines decide what machine/s to use to produce our products. Gm was struggling with this product so they tried to sell it.
