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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1230 |
Essay's paper body
Signode has to conduct customer profitability analysis ? estimate all revenue coming from the customer minus all costs and then weed out the unprofitable and undesirable customers.
Signode should be careful of discount pricing as a modus operandi ? because once you establish that your list prices are ?soft' then discounting becomes the norm ? since Signode is not in an overcapacity situation ? its capacity utilization being 70% it should think of innovative ways of giving discounts selectively for e...
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make a bouquet of product and service or have service as a add-on at a discounted price. The value added service it offers can be charged at a lower rate than it would cost if it were sought elsewhere. With constant discounts Signode might end up losing long-run profits in an effort to meet short-run volume goals...
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General points of the essay
The Customer Comes Second
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Provide an example of an accounting estimate and explain how a change in your estimate could occur. What action does IAS 8 require when such a change occurs?
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