Identifying the relevant and irrelevant costs

Assignment Help Management Theories
Reference no: EM131183716

Relevant Costs

Two partners own together a small landscaping business in North Carolina, called Summer Lawn Care. They have been specializing in summer grass seeding, installation, and maintenance. Recently, the partners acquired special technology and know-how for winter grass installations and maintenance. They also added a tree cutting service as recent storms in the area had caused demand for this service to soar. One of the partners insists that the name of the business should change to Lawn and Tree Care, so that it better reflects the range of services and, thus, generates more customer interest, and thus contracts. The second partner wants to keep the old name and argues, "We have already paid for business cards, vehicle paint, signage, and ads in Yellow Pages". Evaluate the arguments of the two partners. Explain and illustrate their points by identifying the relevant and irrelevant costs for this decision.

Guided Response:

In 300 words or more, please, provide your response to the above discussion question. Identify all the costs in the decision process, including explicit costs, implicit costs and sunk costs.

Reference no: EM131183716

Questions Cloud

How data will used drive supplier performance improvements : Your Supply Chain Manager has assigned you the responsibility of developing a new Supplier Evaluation process for your company. Supplier communication plan to inform selected suppliers of this new process and Explain how data will be used to drive su..
What is the inventory carry cost for andrews : what is the inventory carry cost for Andrews if the company carries one additional unit of Ant in inventory at the end.
Enthalpy of vaporization : Ethanol (C2H5OH) boils at 78°C. Its density is 0.789g/mL. The enthalpy of vaporization is 38.56 kJ/mol. The specific heat of liquid ethanol is 2.3 J/g-K.
Offer a brief explanation of the history of the theory : Relate the theory to an example from the present day which supports and reflects this view of happiness. Explain how you would apply this theory to your own pursuit of happiness.
Identifying the relevant and irrelevant costs : The second partner wants to keep the old name and argues, "We have already paid for business cards, vehicle paint, signage, and ads in Yellow Pages". Evaluate the arguments of the two partners. Explain and illustrate their points by identifying t..
Evaluate the product using the five step plan : Develop a SPC checklist for each dimension of the product that you believe would be subject to statistical control. - Evaluate the product using the five-step plan that is associated with the Kaizen philosophy.
What is the value of the cost pool : The Housekeeping Services department of Ruger Clinic, a multispecialty practice in Toledo, Ohio, had $100,000 in direct costs during 2007.
Briefly debate the ethical issues in this study : In the article, the authors defined ‘optimism' as dispositional optimism. Should dispositional optimism be the only representation of the concept of optimism? Critically examine it in the light of the study's aim to observe the role of optimism in..
Preparation of buffer in one sentence explianing : Of the three options given below, select the best acid as a starting point for the preparation of this buffer in one sentence explianing your reasoning a (HOCH2)3CH3Cl 8.51 x 10-9 CH3CO2H 1.74 x 10-5 NaH2PO4 6.31 x 10-8

Reviews

Write a Review

Management Theories Questions & Answers

  Company shows a healthy operating profit

There is a view that if a company shows a healthy operating profit but has low or negative operating cash flows, there is a suspicion that earnings manipulation or creative accounting has occurred. Discuss why there should be suspicion.

  Organizational stress seems to be an inevitable

Organizational stress seems to be an inevitable consequence of doing business in today's fast-paced global society. But what are the causes of organizational stress?

  Explain how your product will solve these problems

Need and problem identification - Summarize the problems that have been raised and needs that have been identified. Presentation and demonstration - Explain how your product will solve these problems and meet these needs

  Are there natural limits on the number of buildings

Are there natural limits on the number of buildings that can be built or the height of those buildings? How would the market for air rights affect this?

  Define the paradox of servant leadership

Define the paradox of servant leadership and explain where you see this paradox present in your own representation.

  The strategic implications of moving there versus not moving

1. You are considering moving your assembly plant from the U.S. to Mexico. Your boss has asked you to provide a summary analysis of the relocation.

  Company impact upon its society and stakeholders

How well does the company impact upon its society and stakeholders

  Discuss the idea of democracy and its overlapping meanings f

ICTs have become widespread. As such, governments have started adopting ICTs to meet the needs of their citizens and create transparency in the democratic process. The participation of stakeholders is often used by designers to help ensure that the t..

  Describe the consequences of power for the leader

Describe the consequences of power for the leader, followers, and organizations?

  Detailed description of the health database

Detailed description of the health database (validity and reliability) Overview of the Behavioral Risk Factor Surveillance System (BRFSS) database

  Formulate an ip model for this problem

Northeastern Airlines is considering the purchase of new long-, medium-, and short-range jet passenger airplanes. The purchase price would be $67 million for each long-range plane, $50 million for each medium-range plane, and $35 million for each ..

  Identify reorganizational changes and their impact on team

Identify two reorganizational changes and their impact on the team. Identify two specific ways you will inform your supervisor of plans and progress. Identify five action items required in order to implement the change.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd