Reference no: EM13215002 , Length: 8000 Words
Superior Manufacturing Company. Analysis
1. Based on the 2004 statement of profit and loss data (Exhibits 1 and 2), do you agree with Water's decision to keep product 103?
2. Should Superior lower as of January 1, 2006 its price of product 101? To what price?
3. Why did Superior improve profitability during the period January 1 to June 30, 2005? How useful was the data in Exhibit 4 for the purpose of this analysis?
4. Why is it important that Superior has an effective cost system? What is your overall appraisal of the company's cost system and its use in reports to management? List the strengths and weaknesses of this system and its related reports for the purposes management uses the system's output. What recommendations, if any, would you make to Waters regarding the company's cost accounting system and its related reports?
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