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ACCT310-1203B-04 Managerial Accounting AssignmentName: Unit 4 Discussion Board Deliverable Length: 3-4 paragraphs Students should review the following statements and write 3–4 paragraphs that provide...

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ACCT310-1203B-04 Managerial Accounting
AssignmentName: Unit 4 Discussion Board
Deliverable Length: 3-4 paragraphs

Students should review the following statements and write 3–4 paragraphs that provide support for your answers:

  1. Managers should base pricing decisions on both cost and market factors. In addition, they must also consider legal issues. Describe the influence that the law has on pricing decisions.
  2. "It is impossible to use Discounted Cash Flow methods for evaluating investments in research and development. There are no cost savings to measure, and we don’t even know what products might come out of our R&D activities." This is a quote from an R&D manager who was asked to justify investment in a major research project based on its expected net present value. How would you respond to this statement? Do you agree or disagree? Explain.

Recommendations for Responding to Peer Posts

  • Compare the points made about the influence of the law on pricing decisions to your own.How were they similar or different?
  • Review a peer’s post that was different from your own regarding the use of Discounted Cash Flow methods.Did any of the points he or she made make you reconsider your position as to which costing method would be best?
  • If so, what points made you change your mind?
  • If not, what additional arguments can you make that would directly refute the points that he or she made.

Grading Criteria

Percentage

Describe the influence that the law has on pricing decisions.

20%

How would you respond to the R&D manager’s statement about Discounted Cash Flow methods? Do you agree or disagree? Explain.

20%

Supporting research/arguments made

40%
Answered Same Day Dec 20, 2021

Solution

David answered on Dec 20 2021
114 Votes
MANAGERIAL ACCOUNTING
MANAGERIAL
ACCOUNTING
SHORT QUESTIONS
NAME:
P a g e | 1
The pricing decisions employed by managers are important criteria in determining the actual
evenue potential for an organization. The managers need to look at various key data’s and such
as cost and the market factors before pricing a commodity. The cost influences the managers in
determining the profit margins of the company and what should be the bare minimum price
which the company should quote so as to recover its cost and at the same time earn a profit
margin which is handsome in nature. The cost is an input material for an organization and it can
employ cost effective measures to boost its profitability.
The market factors are also an important consideration which would help organizations to tap
market differently on the basis of demand of its products. The consumers which are highly
elastic in terms of demand of the product can be charged low prices while consumers who cannot
live without it can be charged highly so as to compensate the margins of the company. Thus the
demand supply condition is an important determinant of pricing a commodity.
The legal issues are also likely to be kept in mind in adopting the pricing policy so that the
competition remains...
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