Alternative measures to offering discounts to customers

Strategic Management
Accounting

Contents
INTRODUCTION...........................................................................................................................................3
QUESTION 2.................................................................................................................................................3
Alternative measures to offering discounts to customers.........................................................................3
Methods that can be adopted to manage and achieve the efficient control of inventories and gain the
resulting benefits.....................................................................................................................................5
QUESTION 3.................................................................................................................................................7
Critically discuss pricing methods with advantage and disadvantage......................................................7
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
Strategic management accounting entails evaluating contextual facts about rivals in the
industry, governmental ideologies impacting the industry, current pricing, volume, and expense
patterns. The outcome of this assessment is then based on the firm's limited capital. As a result,
management will decide the firm's required system’s ability to be at the forefront of the
competition. Strategic management accounting encompasses both external documentation and
knowledge in addition to internal relations (Sakun and et.al, 2020). It decides to take proactive
action in order to outperform the rivalry in the industry. Strategic management accounting is a
part of the management accounting where the focus is on details relating to external events, and
also non-financial details and internal produced details. In this report select two questions. In
first question define about the methods for effective working capital and maintain profitability.
In second question discuss about the transfer price method with their merits and demerits.
QUESTION 2
Alternative measures to offering discounts to customers
There are different options to provide discount to customers and reduce working capital
in business with minimal potential reduction in profitability. There are mentioned such
alternatives:
Product Bundle: Product bundling is a form of up - selling and bridge approach that
encourages customers to buy more goods in position to take account of packaged marketing.
Product bundling functions when customers believe that shopping 2 or 3 products simultaneously
can save them more time than having them separately. It's the one of the most common methods
for increasing a client's sales revenue. Instead of just discounting a particular commodity, build a
deal or kit bid that encourages customers to pay more for a greater benefit and save money by
buying in bulk. Try 1 for $10 or 3 for $25 if they normally sell lamps for $10 each. They may
also crossover brand lines to make increasingly customized packs, including such selling a torch
and tub wash for $20 where the candle is usually $10 and the tub wash is $15.
Shortening cash conversation cycle: Corporations may get revenue on credit even
though they have a limited degree of working capital whether they want to keep the collection