A manufacturing company is in the process of introducing just in time (JIT) and total quality management (TQM) into every aspect of its value chain. Which TWO of the following are appropriate changes to make to the support activities in the organization's value chain?
A project has a positive net present value (NPV) when discounted at a company's weighted average cost of capital (WACC). The project has also been evaluated using a range of other investment appraisal techniques. It has now been recognized that the project is of much higher risk than the average risk of the company's existing portfolio of projects. It has therefore been decided that the discount rate to be used when evaluating this project should be the WACC adjusted for risk. As the result of changing the discount rate as described, which of following statements are correct? Select ALL that apply.
A large company that sells a single product has many customers. The contribution per unit of the product is $40. Data for the company as a whole are given below.
Using customer profitability analysis, what is the total annual profit for this customer?
A manufacturing company has recently introduced a Total Quality Management (TQM) system. The company has invested heavily in the education and training of its staff, in addition to implementing new product design engineering. There is a plan to sample units from each batch of products manufactured to test for errors, although this has not yet been implemented due to budget constraints. The company is experiencing high levels of customer complaints, with many faulty units being returned by the customer for refund or replacement. Sales revenue has fallen recently, mainly due to negative press coverage linked to dissatisfied customers. Select the statement MOST likely to apply.