Graded Discussion Board# 01 Cost and Management accounting (mgt402) opened on November 17, 2015 last date will be November 20, 2015.

GDB #1 Dated: Nov 16, 15

Important announcement

Graded Discussion Board

Cost and Management accounting (mgt402)


Dear Students!

This is to inform that Graded Discussion Board (GDB) No. 01 will be opened on November 17, 2015 for discussion and last date for posting your discussion will be November 20, 2015.


Topic/Area for Discussion

 “Control Over Material”


This Graded Discussion Board will cover Audio/Video lessons #9.


Learning Objectives: The students are expected to learn and apply the economic order quantity model in different situations.


Raza and Hamza were the famous entrepreneurs of Lahore due to their retailing skills in the business of instant geyser and imported refrigerators.  As winter starts, they both purchase instant geyser from Rehman Manufactures to sell at their showrooms. Raza knows that order setup cost with Rehman Manufactures is Rs. 200 and the annual inventory holding cost is Rs. 400. Raza expects that Hamza has the same cost figure. Raza has accidently learned that Hamza  is ordering  10 instant geysers every time he orders .


  1. Show how Raza can use this information to deduce the demand that Hamza face, by showing demand and its formula.
  2. Explain why competitor would need to know each other’s demand and mention from which perspective party it helps the retailers.

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Accurate picture
Looking only at own industry fails to provide complete picture. Your rank within your industry can give silence you into a false sense of security. Knowing where your brand stands against a national brand can be humbling, but it give the warning you need to make the necessary correction.
Learn from other
one can learn best practices from almost other industry. Gaining market insight from other brands especially when they are also your customer chosen brands provides valuable insight into competitive advantages you may hold. In order to pull off brand growth or brand revitalization, you need insight into where you stand, as compared to other global brands.
Category convergence.
Category convergence is more common than ever. As global brands diversify and expand their product offerings, they start to compete in industries in which they have been historically absent..
Many marketers are starting to believe the term ‰”category‰” is a misnomer. An energy drink in the beverage category could also be competing in the health & wellness category, depending on how the consumer perceives the brand.
Everyone is your competition
Thanks to innovations in marketing, communications, and distribution, your brand now competes with all brands‰ – from local, mom ‰’n‰’ pop shops to big, global conglomerates. Although it‰’s important for brands to look at their direct competitors, they also compete with all brands for the love and the wallets of consumers.
for 2nd qusation


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