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BBB is a building business that provide service to the public .recently they have been asked to quote for garage conversion (gc) and property extension (EX) .and have found they get fewer gc contract than xpected.
In abc costing:quoted price for gc is 15390 and ex is 31470… and in absorption approach : for gc 16500 and for ex 30750.cost + price in both cases .question:assuming the cost of a GC falls by nearly 7% and price of an ex rises by about 2%as a result of the change to ABC. suggest possible pricing strategies for the two product that BBB sells and suggest two reasons other than high price for the current poor sale of GC.
There is no point in simply typing out a test question and expecting someone else to provide the answer for you!
You must have an answer in the same book in which you found the question (or the examiners own answer since this is a question from a past exam (June 2010, question 1).
You should ask about whatever it is in the answer that you are not clear about – then I will explain to you.
(I assume that you have watched my free lectures on ABC and on pricing. The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.)
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