Answered: Please explain the statement below…

Business

Accounting

Please explain the statement below thourougly with an example to illustrate the answer.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

Problem 8DQ: Why might management analyze product profitability?

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

Please explain the statement below thourougly with an example to illustrate the answer.

"A product with a high gross profit could be an unprofitable product".

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Which of the following is not an application of cost-volume-profit analysis? Setting prices for products and services. Performing strategic “what-if” analyses. Deciding whether to cut a product line. Determining the short-term cost or profit implications of many decisions. Deciding whether to make or buy a given product or service.
Which statement is FALSE about product-market fit? a. Even if you have product-market fit, you can lose it b. Product-market fit is not a discrete event c. Once you have product-market fit, you can ignore the competition
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