Question: How should prices be set when a company has excess capacity? Why should prices be set this way? Consider both short-term and long-term pricing decisions.

How should prices be set when a company has excess capacity? Why should prices be set this way? Consider both short-term and long-term pricing decisions. Discuss this question in the context of Banyen Industries, using specific examples mentioned in the case.

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In the context of Suregrip Corporation case, why is cause and effect so important in understanding the concept of ABC? In practice, how is cause and effect determined for cost accounting relationships?

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