Week 4 Flashcards
(2 cards)
1
Q
What are the non-financial factors that need to be taken into account when making a final decision on the production plan
A
2
Q
Discuss THREE non-financial considerations that would influence the percentage of profit mark-up that they apply on this order
A
- Emergency order
- Does LSC want the future business?
- Can LSC cope with workload of future orders?
- Signal that end price sends to customer
- Will customer expect same mark-up on all future orders?
- Could future orders with customer expand reputation and lead to additional new customers?
Total 2 marks - Would final price be consistent with the market?
- LSC strategy – cost leader or differentiator
