In: Accounting
Which costing methods that the sale-oriented company prefers in order to provide a better signal about performance?
Solution
The sale-oriented
A business approach or philosophy that focuses on promoting sales of whatever a company makes or supplies, through marketing and sales calls. See also market orientation and product orientation.
Here are five alternative concepts under which organizations design and carry out their marketing strategies.
A better signal about performance
The Production Concept. This concept is the oldest of the concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution. They assume that consumers are primarily interested in product availability and low prices. This orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its features.