BBA Cost Accounting: Product Price Analysis

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What is the price of the product over the last two years?

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

What is the capacity of the business?

The capacity of the business is __ units.

What is the maximum number of units that can be produced with the same setting? How did you calculate it?

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.

What investment would the owner need to expand the business (20%, 50%, 100%)? After the expansion, what would be the new capacity of the business?

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. Signup and view all the answers

What sources of funding are available to the owner to expand the business?

The owner can potentially get loans from friends, banks, or use personal resources to expand the business. Signup and view all the answers

What is the market readiness to buy the extra products, and would the increase affect prices?

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. Signup and view all the answers

What are the factors that contribute to the true or full cost of the items?

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. Signup and view all the answers

What is the significance of understanding the product and its pricing process?

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. Signup and view all the answers

What are the properties of Polyurethane (PU) Shoes?

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

What is the production process of PU Shoes?

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. Signup and view all the answers

What are the sustainability initiatives of the PU Chapal Manufacturing business?

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. Signup and view all the answers

Define fixed cost and variable cost in the manufacturing process.

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. Signup and view all the answers

What are the advantages of using Polyurethane (PU) in footwear manufacturing?

The advantages include durability, flexibility, light weight, water resistance, and variety in styles and designs. Signup and view all the answers

What is the commitment of the PU Chapal Manufacturing business to the footwear industry?

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. Signup and view all the answers

What is the significance of calculating the manufacturing costs for each SKU of the product?

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. Signup and view all the answers

How does the PU Chapal Manufacturing business contribute to social causes?

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. Signup and view all the answers

What is the price of the product over the last two years?

The price of the product has increased by 10% over the last two years. Signup and view all the answers

What is the capacity of the business?

The business has a production capacity of 10,000 units per month. Signup and view all the answers

What is the maximum number of units that can be produced with the same setting? How did you calculate it?

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. Signup and view all the answers

What investment would the owner need to expand the business by 50%? After the expansion, what would be the new capacity of the business?

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. Signup and view all the answers

Would the market be ready to buy the extra products? Would the increase affect prices?

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. Signup and view all the answers

What sources of funding are available to the owner to expand the business?

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

What are the key components of the full cost of the items?

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 Signup and view all the answers

What are the properties of Polyurethane (PU) Shoes?

The properties include flexibility, durability, resilience, lightweight, water resistance, and variety in styles and designs. Signup and view all the answers

What is the significance of understanding which costs are variable and which are fixed in the manufacturing process?

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

What is the commitment of the PU Chapal Manufacturing business to the footwear industry?

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

What is the production process of PU Shoes?

The production process involves polyurethane production, molding, curing, and finishing. Signup and view all the answers

What are the sustainability initiatives of the PU Chapal Manufacturing business?

The initiatives include ethical sourcing of materials, waste minimization, and active engagement in community initiatives. Signup and view all the answers

Define fixed cost and variable cost in the manufacturing process.

Fixed costs remain constant regardless of production volume, while variable costs fluctuate with production levels. Signup and view all the answers

What is the significance of calculating the manufacturing costs for each SKU of the product?

Calculating manufacturing costs for each SKU helps in understanding product profitability and making informed pricing and production decisions. Signup and view all the answers

What is the significance of the PU Chapal Manufacturing business's contribution to social causes?

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

What are the advantages of using Polyurethane (PU) in footwear manufacturing?

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

BBA Cost Accounting: Product Price Analysis

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Questions and Answers

What is the price of the product over the last two years?

What is the capacity of the business?

What is the maximum number of units that can be produced with the same setting? How did you calculate it?

What investment would the owner need to expand the business (20%, 50%, 100%)? After the expansion, what would be the new capacity of the business?

What sources of funding are available to the owner to expand the business?

What is the market readiness to buy the extra products, and would the increase affect prices?

What are the factors that contribute to the true or full cost of the items?

What is the significance of understanding the product and its pricing process?

What are the properties of Polyurethane (PU) Shoes?

What is the production process of PU Shoes?

What are the sustainability initiatives of the PU Chapal Manufacturing business?

Define fixed cost and variable cost in the manufacturing process.

What are the advantages of using Polyurethane (PU) in footwear manufacturing?

What is the commitment of the PU Chapal Manufacturing business to the footwear industry?

What is the significance of calculating the manufacturing costs for each SKU of the product?

How does the PU Chapal Manufacturing business contribute to social causes?

What is the price of the product over the last two years?

What is the capacity of the business?

What is the maximum number of units that can be produced with the same setting? How did you calculate it?

What investment would the owner need to expand the business by 50%? After the expansion, what would be the new capacity of the business?

Would the market be ready to buy the extra products? Would the increase affect prices?

What sources of funding are available to the owner to expand the business?

What are the key components of the full cost of the items?

What are the properties of Polyurethane (PU) Shoes?

What is the significance of understanding which costs are variable and which are fixed in the manufacturing process?

What is the commitment of the PU Chapal Manufacturing business to the footwear industry?

What is the production process of PU Shoes?

What are the sustainability initiatives of the PU Chapal Manufacturing business?

Define fixed cost and variable cost in the manufacturing process.

What is the significance of calculating the manufacturing costs for each SKU of the product?

What is the significance of the PU Chapal Manufacturing business's contribution to social causes?

What are the advantages of using Polyurethane (PU) in footwear manufacturing?

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