Answer:
1. Companies like P&G have their customer base consisting on end customers whose choice of toothpaste and towels which can change depending on multiple influencers like cost, other attractive features in competitors, freebies etc. Thus a strong customer focus and reach is essential to even retain the current customer base. Thus these companies need to focus on advertising to remain competitive in the current market atmosphere.
2. The numbers of advertising companies can be appropriately engaged based on cost and effectiveness as long as there are sufficient companies customizing the advertising and marketing efforts for the region in focus. If there are too many agencies running the advertising, the cost could be very high. If the number of agencies are decreased to too low and same advertising efforts are used in different type of demographic regions, the impact and effectiveness of the advertising could be less and not as effective as required. Thus choosing the sufficient number of agencies to reach all the required demographic regions is essential to balance the cost and effectiveness of advertising.
3. Innovation will always be rewarded in the current market atmosphere. If we look at the current market position of P&G, seeing that the they are currently placed in a good position with good presence in multiple products for different customer segments. Thus after studying the market and weighing all the aspects, it could make sense for P&G to consolidate and cut the less profitable businesses.
Answer:B. Running his own small farm.
Explanation:
Having got the exprience in running a farm, couple with his financial and managerial knowledge from Accounting will help him to be successful.
Lucia’s analysis is subject to assumptions because(c) The analysis lacks validity if the total fixed costs required for the calculated break-even point generates too low of capacity.
Explanation:
Cost-volume-profit analysis is used to make short-term decisions.
Cost-volume-profit (CVP) analysis is used to study the changes in cost and volume and how its impact on the company's operating income and net income.
While performing <u>Cost-volume-profit (CVP) analysis</u> several assumptions are made like assuming the Sales price per unit to be constant. Variable costs per unit to be constant.
The five basic component of CVP analysis includes
- volume or level of activity
- unit selling price
- variable cost per unit
- total fixed cost
- sales mix.
The pdca cycle is a powerful approach for problem solving as it provides the foundation for teams to figure out ways to change and implement new ideas within their group setting and project or business. The PDCA stands for plan-do-check-act. In the planning stage your team will plan by determining what the problem is and what ways to fix it. In the do stage, your team will act on the ways you can solve the problem. In the check stage you are looking to check your work and see what worked and what needs to be changed. The final stage is the act stage which if you find solutions that work, implement them moving forward.
Answer: The authorization of funds for the museum is an example of an earmark.
Explanation:
Earmarking is the act of setting aside particular fund for a specific purpose.
In the United States, earmarks are directive from the Congress that funds should be allocated and spent on certain projects.
For example, one can say the prime minister has earmarked three billion dollars for the construction of new hospitals. The expenditure on the funding of the public art museum is an earmark.
