CONTACT: PRAKASH
Mob:
+919741410271
Strategic Cost
Management
1.
Band-Box is considering the purchase of a new wash and dry equipment in order
to expand its operations. Two types of options are available: a low-speed
system (LSS) with a Rs 20,000 initial cost and a high speed system (HSS) with
an initial cost of Rs 30,000. Each system has a fifteen year life and no
salvage value.
The
net cash flows after taxes (CFAT) associated with each investment proposal are:
Low
speed system (LSS) High
speed system (HSS)
CFAT
for years 1 through 15 Rs 4,000 Rs
6,000
Which
speed system should be chosen by Band-Box, assuming 14 per cent cost of
capital?
2.
Product Life Cycle is an important concept while conceiving any idea related to
a new product. What are the characteristics of Product Life Cycle?
3.
A) A startup company has opted for low cost provider strategy for pricing its
products. You are requested to enumerate the downside of such a strategy.
3.
B) Activity based management information has a high positive impact on
management decision making. List down the management decision areas that have
been benefitted by activity based management technique.
CONTACT: PRAKASH
Mob:
+919741410271
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