MANAGEMENT ACCOUNTING ASSIGNMENT

Management Accounting Assignment

Table of Content

Part I: Willingness to Pay Street Survey4

Background4

Method5

Survey Findings Summary8

Part II: Product Analysis21

Target Price21

Unit Cost (per item) Statement21

Break Even Analysis and Margin of Safety23

Conclusion and Recommendation25

Bibliography26

Appendix A: Sample Willingness to Pay Street Survey Questionnaire29

List of Tables

Table 1: Descriptive Statistics20

Table 2: Cost of Accessory20

Table 3: Net Income (Accessories)22

Part I: Willingness to Pay Street Survey

Background

The purpose of doing this marketing research is to fulfill our need knowledge of the accessories' market? The result was then used to answer such questions linked to consumer, customer, and public to the marketer through information that had been collected? This research also can help us to make a decision about what brand to be sold (product decisions) and shift from intuitive information gathering to systematic and objective investigating? By providing the necessary information on which to base decisions, marketing research can reduce the uncertainty of a decision and thereby decrease the risk of making the wrong decision?

The purpose of this paper is to formulate a formal business report to the Managing Director regarding the launch of a business selling accessories? For this purpose, initially a general survey of pricing in the high street was conducted to determine the general range of the prices? Subsequently, a street survey was administrated to the general people in London streets to determine how much people are willing to pay for accessories?

While it is true for a business to be successful the product must sell, they do not sell themselves, and marketing is just as necessary as production? Marketing insures that the right goods and services are produced? Production and marketing work together to satisfy human needs? This strategy, if successful, will benefit your company?

Method

Quantitative survey methods were used to investigate the how much people are willing to pay for accessories (i?e? hats, scarves, gloves, belts, beads, etc)? Survey research could be very helpful and beneficial to products, politicians, and sociologist who are in search of gathering people's viewpoint on certain topics? Survey research can be used while researching a group of small residents to investigating a large group of inhabitant's? Survey's can be very beneficial for companies as well as consumers because they first can learn about a product test it out, rate the product and than if the product gets good feed back than the company can go head and distribute it to vendors and feel comfortable with the product being out in the market? (this is where I need to fix it because it's must benefit all)

Although a survey research can be favourable it can be time consuming, pricey and complicated depending on the type of survey that will be used? Time consuming because there are several steps that have to be taken before issuing a research survey such as training the for the person who will be conducting the survey, gathering the group that qualifies for the study and setting up appointments with them? Pricey because you have to pay the trainers, who will train the conductor of the survey and in some ...