Exam 12: Technology and Operations Management

Understanding an organization's cost base is essential in determining the required _____ strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

Mixed costs are those costs that increase as the level of production increases.

The level of sales revenue or volume which is required in order for the organization to cover all of its costs is called the ________.

Fixed costs are those costs which are directly tied to the manufacturing of a product,or the delivery of a service,depending on the type of business being assessed.

Understanding an organization's cost base is essential in determining the required pricing strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

Name and describe the five influences on pricing decisions other than cost?

How is breakeven point calculations helpful in determining sales revenue level requirements?

Developing strategies is a reason for managers to understand the configuration of the cost base of the organization.

Understanding an organization's cost base is essential in determining the required distribution strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

Producers often use costs as a primary basis for setting prices on the goods and services they offer the public.

Uncontrollable costs are those costs that increase as the level of production increases.

The formula for the Break-even Point plus profit is:

_______ costs are those costs that increase as the level of production increases.

Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost.They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market,so they face no direct competition.Their decision to charge a high price is consistent with the market price strategy.

A skimming pricing strategy allows low income households the ability to purchase a particular good or service.

To build an understanding of the cost base is accomplished by working through the various zones within an organization's ______ and determining the cost composition of each.

Producers often use ________ as a primary basis for setting prices on the goods and services they offer the public.

Understanding an organization's cost base is essential in determining the required distribution strategy which will be utilized in the marketing of a product and its corresponding impact on profit.

What impact does a change in selling price make to the breakeven point?

A type of indirect costs,called direct costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.