What is packaging? How does it vary during a product/service's lifecycle?
What will be an ideal response?
Packaging is the way the product or service is presented to the customer. For products, this can mean the number of
sizes, colors, and flavors available. For services, this can mean the range of service options available, such as
different types of hotel rooms to accommodate different types of travelers.
The focus on the packaging of products and services will change during the life cycle. In the introduction stage,
companies will often provide a limited number of variants (partially because many companies do not know which
specific variants customers prefer when the offering is first launched), whereas later stages warrant more choices.
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Which of the following statement is true regarding choice of the denominator volume level in conjunction with the process of allocating fixed manufacturing costs to production?
a. This choice has no effect on the standard overhead cost-allocation rate. b. The choice affects the standard overhead cost-allocation rate but not product cost. c. Under absorption (full) costing, this choice can affect reported profits for the period. d. The choice typically will affect end-of-period asset values, but not the production-volume variance for the period. e. The choice is important only if the company in question uses variable costing.
From the following details of a merchandiser, calculate the Cost of Goods Sold. (Assume the merchandiser uses the periodic inventory system
) Net Sales $198,000 Purchases 92,000 Purchase Returns and Allowances 1,800 Purchase Discounts 1,400 Freight In 1,350 Beginning Merchandise Inventory 62,000 Ending Merchandise Inventory 36,000 A) $116,150 B) $62,800 C) $114,800 D) $54,150