Question

What are ‘hidden’ and ‘unanticipated’ costs associated with introducing own sales force in this case that...

What are ‘hidden’ and ‘unanticipated’ costs associated with introducing own sales force in this case that Macy and Jake have to carefully consider in the analysis? How would inclusion of these costs affect your decision

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Hidden costs are those costs which are not shown on the income statement of the company and those costs are not measured through any financial statement.

Unanticipated cost are those cost which are not forecasted in advance and they occur accidentally and those causes the problem for the management to record them.

Hidden cost for introducing on sales force would be various kinds of control related loss which are not affected into its books of accounts.

Various type of anticipated cost would be those cost who occour accidentally like accidental loss which are not to be recorded in the books of accounts proactively.

Inclusion of these cost will severely affect the decision because it will act negative for the project as it will take down the net present value of those project which where earlier higher and it would lead to even rejection of the projects.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Case 1.1 Electronic Records Management (ERM) Spring Street Company (SSC) wanted to reduce the “hidden costs”...
Case 1.1 Electronic Records Management (ERM) Spring Street Company (SSC) wanted to reduce the “hidden costs” associated with its paper-intensive processes. Employees jokingly predicted that if the windows were open on a very windy day, total chaos would ensue as thousands of papers started to fly. If a flood, fire, or windy day occurred, the business would literally grind to a halt. The company’s accountant, Sam Spring, decided to calculate the costs of its paper-driven processes to identify their impact...
Your company is considering paying a commission to the sales force to expand sales. You are...
Your company is considering paying a commission to the sales force to expand sales. You are charged by the Chief Financial Officer with 1) computing a new breakeven point, and 2) the operating profit increase by 20% with the new sales commission plan. You spend the next week gathering information, analyzing the information, and performing various cost-volume-profit analysis. You generate a report showing the new plan should lead to a substantial increase in sales with a minimum increase in breakeven...
Describe a decision made by your chosen company that involved costs that should have been ignored....
Describe a decision made by your chosen company that involved costs that should have been ignored. Why did the company include these costs in their decision process? Why did the company make this decision and how did these costs affect the decision? Based on what you have learned in this course, what advice/recommendations would you give the company? Post your answer to the discussion board.
Assume you own a company that produces clothing products such as shirts and shorts. Your company...
Assume you own a company that produces clothing products such as shirts and shorts. Your company has manufactured clothing products locally in the United States for over 30 years. Because low-cost competition is increasingly gaining market share and your company costs are relatively high, you are considering outsourcing production to China. 1. Describe how differential analysis can be used to assist in making this type of make-or-buy decision. Include specific examples in your response. 2. What additional factors would you...
You are the chair of the Network's ad hoc task force. Your charge is to evaluate...
You are the chair of the Network's ad hoc task force. Your charge is to evaluate the two alternatives and to make a recommendation on which one to accept, if revenues would be identical for the two alternatives, and hence the decision can be made solely on the basis of costs. As part of the analysis, the costs of the two alternatives must be estimated on a per procedure basis and an annual basis. In addition, any relevant qualitative factors...
You are the chair of the Network's ad hoc task force. Your charge is to evaluate...
You are the chair of the Network's ad hoc task force. Your charge is to evaluate the two alternatives and to make a recommendation on which one to accept, if revenues would be identical for the two alternatives, and hence the decision can be made solely on the basis of costs. As part of the analysis, the costs of the two alternatives must be estimated on a per procedure basis and an annual basis. In addition, any relevant qualitative factors...
The ImClone Case In the ImClone case, Martha Stewart was convicted of lying to investigators (obstruction...
The ImClone Case In the ImClone case, Martha Stewart was convicted of lying to investigators (obstruction of justice and perjury) and also charged with securities fraud for selling stock of a company called ImClone. Based on your understanding of the ImClone case, answer the following questions: Why did this case come to the attention of the SEC? What were the specific crimes involved in this case? Should Stewart have been prosecuted? Why or why not? Did being famous make things...
Instructions You are the chair of the Network's ad hoc task force. Your charge is to...
Instructions You are the chair of the Network's ad hoc task force. Your charge is to evaluate the two alternatives and to make a recommendation on which one to accept, if revenues would be identical for the two alternatives, and hence the decision can be made solely on the basis of costs. As part of the analysis, the costs of the two alternatives must be estimated on a per procedure basis and an annual basis. In addition, any relevant qualitative...
The Question, I would like you to include some IMPLICIT COSTS and BENEFITS in your calculations...
The Question, I would like you to include some IMPLICIT COSTS and BENEFITS in your calculations to come up with a revised accounting profit and recommendation on whether or not to return to the factory job. The senario, A carpenter quits his job at a furniture factory to open his own cabinetmaking business. In his first two years of operation, his sales average $100 000 and his operating costs for wood, workshop and tool rental, utilities, and miscellaneous expenses average...
Break Even Analysis Consider the concept of break even analysis and target income.  What is your understanding...
Break Even Analysis Consider the concept of break even analysis and target income.  What is your understanding of Break Even Analysis and Target Income. Use your own words. How do these analytical tools relate to product pricing and cost management? Provide specific hypothetical, numerical examples of how Break- Even Analysis can impact pricing of any company’s products. Pricing Why would a company seek to position themselves as low price or high price item in the market place?  How might this affect sales...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT