Q1

Q1.1

The Company is thinking using the total life cycle to price the product. Explain to the company how the company can be benefited using the total life cycle costing approach to product costing over the traditional product costing system.

Q1.2

Consider the company uses the life cycle costing. Which alternative would you recommend to the company? Show calculations to support answer.

Q1.3

What other factors should lncepta consider om choosing its costing and pricing strategy. Justify your suggestions

(Attached Q1)

Q2.

Q2.1 What is a schedule showing the maximum target costs for Warehousing, assuming that the company wants to maintain the same amount of profit next year?

Q2.2 "Value engineering is the key to achieve target cost". Explain the statement with suitable examples. (Attached Q2)

Q3. "The looming supply disruption from coronavirus offers historical opportunities for companies to build or destroy customer goodwill" (Byrnes & Wass, 2020). Discuss the statement. Your response should cover how an organization can manage suppliers and maintain customer loyalty even after this pandemic crisis.

Q3.2

By "Improving supplier relations, the organization can reduce the bargaining power of their supplier". Do you agree? Critically evaluate the statement.

Q4

Q4.1 Perform a customer profitability analysis for Denair. Compute the gross margin and operating income on transactions related to Breeze Easy and Fresh Cool

Q4.2 Comment on the relative profitability of two customers and what, if anything, Denair should do. Explain.

Q4.3 "Loyal customers are not necessarily desirable customers. The common practice of trying to retain customers by discounting or providing a loyalty program may no longer be an affordable way to do business. Discuss the statement with suitable examples.(Attached Q4)