Discuss the major barriers to entry
What will be an ideal response?
? Economies of scale are defined as any cost savings received as volume of the product increases.
? Cost disadvantages from other than scale - There are certain factors in production that yield cost advantages such as favorable access to raw materials, exclusive or protected product technology, favorable locations, and government subsidies.
? Product differentiation is the identification of the product to the customer. Any aspect of the product that can set it apart for the customer is the key to brand loyalty and, ultimately, product differentiation.
? Capital requirements are the investment cost required to compete financially.
? Switching costs are the costs associated with the buyer that switches from one supplier to another.
? Access to distribution channels - A new competitor in the industry must work with distribution outlets to provide a space through which its products can be sold.
? Government policy can involve the implementation of laws and regulations to which all competitors in an industry must adhere.
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Baptiste Accounting Services expects its accountants to work a total of 30,000 direct labor hours per year
The company's estimated total indirect costs are $152,000. The direct labor rate is $104 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Baptiste performs a job requiring 52 hours of direct labor and bills the client using a standard markup of 40% of costs, calculate the amount of the client's bill. (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) A) $5,408 B) $216,320 C) $2,269 D) $7,940
Ambiguity about responsibilities and accountabilities describes which category of conflict sources?
a. affective b. structural c. cognitive d. cultural e. communication