Question: Zingerman’s experiences a significant seasonally affect to its business, particularly during the ... Zingerman’s experiences...

Question: Zingerman’s experiences a significant seasonally affect to its business, particularly during the ... Zingerman’s experiences a significant seasonally affect to its business, particularly during the end of the year holidays. Identify three of Zingerman’s costs that are affected by seasonality and explain how these three costs behave

Solutions

Expert Solution

Three costs associated with the company, affected by the seasonality are as follows:

1. Inventory carrying cost

2. Stock-out cost

3. Variable cost

Inventory carrying cost increases with the increase in the inventory level and it happens during the festive or holiday season when the demand is particularly high. With an increase in inventory carrying cost, there is a decrease in stock-out cost. Stock-out cost takes place when a customer does not get the product due to the lack of availability of the product. The stock-out cost decreases with the increase in stock-out cost. The investment in variable cost such as material, labor and utility, increases with the holidays. Increase in variable cost is in positive correlation with the inventory carrying cost, but it is negatively correlated with the stock-out cost. Thus, these costs not always behave in the same direction and have the ability to counterbalance each other.

keosha answered 1 week ago

Next > < Previous

Related Solutions

Part 2 Students sometime report negative experiences when working with teams, particularly if they have experienced...

Part 2 Students sometime report negative experiences when working with teams, particularly if they have experienced a social-loafer in the group. Some argue that social loafing is less prevalent in the workplace because the rewards and sanctions are more closely aligned to individual performance. An interesting argument for individuals' willingness to work and contribute in a group has been posed by Fishbach and colleagues. They argue that identification with others in the group and the group goal is fundamental to...

How do an organization’s business processes and lines of business affect the design of its Accounting...

How do an organization’s business processes and lines of business affect the design of its Accounting Information Systems (AIS)? Give several examples of how differences among organizations are reflected in their AIS? Give an example of how an AIS can improve decision making, and describe the multistep activities involved in the process.

Researchers have found that a significant proportion of women, particularly women in heterosexual relationships, fake or...

Researchers have found that a significant proportion of women, particularly women in heterosexual relationships, fake or have faked orgasm. Based on what we've read this quarter (that means, do your best to try to be sociologically analytical), why do you think women sometimes fake orgasm? What does it have to do with gender roles and/or expectations? What does it have to do with messages girls and women learn about sexuality? And finally, who "benefits" from women faking orgasms, and who...

Question 1: You are evaluating whether the use of red lights during evaluation has a significant...

Question 1: You are evaluating whether the use of red lights during evaluation has a significant effect on liking. Liking was measured as either like or dislike. You collected the below data. Using the Sign Test, did the wine glass significantly influence liking? There is a worked example using the sign test (5 pts) Panelist Liking of wine: No red light Liking of wine: With Red light Direction of change 1 Like Like 2 Dislike Like 3 Dislike Like 4...

What components of GDP tend to decline significantly during recessions (particularly during the 2008 recession), and...

What components of GDP tend to decline significantly during recessions (particularly during the 2008 recession), and what GDP components rise during expansion? In other words, what aspects of GDP are mostly affected when the economy slows down? and why? Neat handwriting please.

Historically, particularly during WWI and WWII there was a fear that integrating women into the military...

Historically, particularly during WWI and WWII there was a fear that integrating women into the military would "masculinize" them. What was the basis of this fear? How was the media a part of constructing this notion?

Suppose a country experiences a significant immigration of labor. Further, this country produces both labor-intensive and...

Suppose a country experiences a significant immigration of labor. Further, this country produces both labor-intensive and capital intensive goods. According to the Rybczynski theorem, what changes in the production of the two type of goods should we anticipate because of the labor immigration? Be sure to use the Rybczynski theorem to answer the question.

A natural spring supplies a local business with their drinking water and is particularly popular, the...

A natural spring supplies a local business with their drinking water and is particularly popular, the owner thinks that there are two types of customers for her product - high volume and low volume consumers. An economist estimated that the high volume annual consumption equals Qh = 24 − 0.3P , where P is the price of a bottle of spring water. Alternatively, the low volume annual consumption equates to Ql = 10 − 0.1P . The marginal and average...

1) which of the following business forms is most suitable for the powers, particularly if they...

1) which of the following business forms is most suitable for the powers, particularly if they establish and conduct the counseling business in conjunction with their like-minded friends?

Select a company which is located where you live. Briefly describe its business then identify what you believe is its most significant business risk.

Select a company which is located where you live. Briefly describe its business then identify what you believe is its most significant business risk. Using the company you selected for the discussion forum, perform a very brief strengths, weaknesses, opportunities, and threats (SWOT) analysis. Please identify what you believe to be the company’s primary strength, weakness, opportunity, and threat.Select what financial ratios or measures you believe are most useful in identifying this business's risks. What would you look for (in the financial...

Subjects