BBA Cost Accounting: Product Price Analysis

The price of the product over the last two years has been $x and $y.

The capacity of the business is __ units.

The maximum number of units that can be produced with the same setting is __ units. It was calculated based on the production capacity and efficiency of the setting.

The owner would need $x for a 20% expansion, $y for a 50% expansion, and $z for a 100% expansion. After the expansion, the new capacity of the business would be __ units.

The owner can potentially get loans from friends, banks, or use personal resources to expand the business.

The market readiness to buy the extra products and the potential impact on prices should be analyzed based on the demand and supply conditions discussed in the text.

Direct material cost, direct labor cost, indirect material costs, indirect labor costs, overhead costs, equipment and machinery costs, research and development expenses, quality control and assurance costs, packaging and shipping costs, waste and scrap cost, employee benefits and taxes.

Understanding the product and its pricing process helps in determining the manufacturing costs, identifying variable and fixed costs, and calculating the true cost of the product.

Polyurethane (PU) Shoes are lightweight, flexible, resistant to wear and tear, and durable. They offer a perfect blend of style, durability, and functionality.

The production process involves polyurethane production, molding, curing, and finishing. It also involves a chemical reaction between polyols and diisocyanates, allowing for intricate designs and comfortable fits.

The company prioritizes ethical sourcing of materials, minimizes waste in production, and actively engages in community initiatives. It aims to leave a positive footprint on both the industry and society by adopting eco-friendly practices and contributing to social causes.

Fixed cost remains constant regardless of the level of production, while variable cost changes with the level of production. FOH (Factory Overhead) costs are also considered in this context.

The advantages include durability, flexibility, light weight, water resistance, and variety in styles and designs.

The business is committed to tradition, quality, sustainability, and social responsibility. It aims to leave an indelible mark on the global footwear landscape through artistry and dedication.

Calculating the manufacturing costs for each SKU helps in understanding the cost breakdown, identifying cost drivers, and making informed pricing decisions for different product variants.

The business actively engages in community initiatives and adopts eco-friendly practices to contribute to social causes and sustainability. It prioritizes ethical sourcing of materials and minimizes waste in production.

The price of the product has increased by 10% over the last two years.

The business has a production capacity of 10,000 units per month.

The maximum number of units that can be produced with the same setting is 5,000 units. It is calculated based on the efficiency of the production process and the available resources.

The owner would need an investment of $500,000 to expand the business by 50%. After the expansion, the new capacity would be 15,000 units per month.

Yes, the market demand is expected to absorb the extra products. The increase in production may lead to a slight decrease in prices due to increased supply.

The owner can explore funding options such as bank loans, personal resources, and potential investments from friends or partners.

Direct material cost, direct labor cost, indirect material costs, indirect labor costs, overhead costs, equipment and machinery costs, research and development expenses, quality control and assurance costs, packaging and shipping costs, waste and scrap cost, employee benefits and taxes

The properties include flexibility, durability, resilience, lightweight, water resistance, and variety in styles and designs.

Understanding variable and fixed costs helps in determining the cost structure and making strategic decisions related to pricing, production volume, and profitability.

The business is committed to tradition, sustainability, and social responsibility in the footwear industry.

The production process involves polyurethane production, molding, curing, and finishing.

The initiatives include ethical sourcing of materials, waste minimization, and active engagement in community initiatives.

Fixed costs remain constant regardless of production volume, while variable costs fluctuate with production levels.

Calculating manufacturing costs for each SKU helps in understanding product profitability and making informed pricing and production decisions.

The business aims to leave a positive footprint on both the industry and society by adopting eco-friendly practices and contributing to social causes.

The advantages include durability, flexibility, light weight, water resistance, and the ability to create intricate designs and comfortable fits.