What is the last step in the consumption process?

What is the last step in the consumption process?

Post-purchase behavior is the final stage in the consumer decision process when the customer assesses whether he is satisfied or dissatisfied with a purchase.

What are the three stages of the consumption process?

The model is shown in Figure 10.3 and is divided into three stages. Pre-consumption, Consumption and Post- consumption.

What is the process of consumption?

Consumption is the process of buying or using goods and services. In other words, doing what consumers in an economy do – consume. In an economy, consumers decide what to consume based on the availability and price of things. We also base what we consume on our own needs and wants.

Is often defined as the study of production and consumption?

Which discipline is often defined as the study of production and consumption? economics. Juan is majoring in a discipline that examines the production and consumption of goods and services.

What are the two major types of production?

Job production, where items are made individually and each item is finished before the next one is started. Batch production, where groups of items are made together. Flow production, where identical, standardised items are produced on an assembly line.

Is money a factor of production?

But money is not a factor of production because it is not directly involved in producing a good or service. Instead, it facilitates the processes used in production by enabling entrepreneurs and company owners to purchase capital goods or land or pay wages.

What is the factor money?

The money factor is the financing charge a person will pay on a lease. It is similar to the interest rate paid on a loan, and it is also based on a customer’s credit score. It is commonly depicted as a very small decimal. Multiplying the money factor by 2,400 will give the equivalent annual percentage rate (APR).

Is raw material a factor of production?

Raw materials are commodities that are bought and sold on commodities exchanges worldwide. Traders buy and sell raw materials in what is called the factor market because raw materials are factors of production as are labor and capital.

Is paper a raw material?

The raw material which is widely used in papermaking is pulp. Many types of fibers like cotton fiber and cellulose fiber are used to produce the paper pulp. Nowadays the most popular material used for producing all quality paper is wood pulp.

What is raw material cost?

Share. Raw material expenses refer to the cost of the components that go into a final manufactured product. They are one of three expenses included in a manufacturer’s cost of goods sold (COGS). The other two are: labour expenses and amortization expenses.

What are the 4 types of inventory?

There are four main types of inventory: raw materials/components, WIP, finished goods and MRO.

Is raw material a fixed cost?

Variable costs may include labor, commissions, and raw materials. Fixed costs may include lease and rental payments, insurance, and interest payments.

Is electricity a fixed cost?

Utilities– the cost of electricity, gas, phones, trash and sewer services, etc. However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output.

Is cleaning a fixed cost?

For example, if you run a cleaning business and have staff who go out to clean your customers’ houses, you may pay them per hour. That’s a variable cost, because the more houses your staff are cleaning, the more your business earns in sales, and the more you will pay your staff.

What are fixed monthly expenses?

The definition of fixed expenses is “any expense that does not change from period to period,” such as mortgage or rent payments, utility bills, and loan payments. Property taxes (if paying monthly)

Is rent fixed or variable cost?

Fixed expenses or costs are those that do not fluctuate with changes in production level or sales volume. They include such expenses as rent, insurance, dues and subscriptions, equipment leases, payments on loans, depreciation, management salaries, and advertising.

Do fixed costs have cost drivers?

A fixed cost does not have an activity or driver that makes the cost increase as the activity or driver increases.

How do you calculate cost drivers?

Calculate the cost driver rate by dividing the total overhead in each cost pool by the total cost drivers. Divide the total overhead of each cost pool by the total cost drivers to get the cost driver rate. Multiply the cost driver rate by the number of cost drivers.

Which cost driver is relevant to electricity cost?

A cost driver is the direct cause of a cost. Fixed costs remain unchanged and its effect is on the total cost incurred. For example, if you are to determine the amount of electricity consumed in a particular period, the number of units consumed determines the total bill for electricity.

How do you identify cost drivers?

What is a Cost Driver?

1. Direct labor hours worked.
2. Number of customer contacts.
3. Number of engineering change orders issued.
4. Number of machine hours used.
5. Number of product returns from customers.