uestion ACCT 434 (Advanced Cost Management) Devry We

ACCT 434 (Advanced Cost Management) Devry Week 5

ACCT 434 Week 5 DQ 1 (Pricing Decision)

ACCT 434 Week 5 DQ 2 (Workout Room)

Week 5 Quiz 1

1- (TCO 7) Major influences of competitors, costs, and customers on pricing decisions are factors of

2- (TCO 7) The first step in implementing target pricing and target costing is

3- (TCO 7) The markup percentage is usually higher if the cost base used is

4- (TCO 7) An understanding of life-cycle costs can lead to

5- (TCO 7) Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling price is computed by adding a 20% markup to full cost. How much should the selling price be per unit for 300,000 units?

6- (TCO 8) A product may be passed from one subunit to another subunit in the same organization. The product is known as

7- (TCO 8) Transfer prices should be judged by whether they promote

8- (TCO 8) When an industry has excess capacity, market prices may drop well below their historical average. If this drop is temporary, it is called

9- (TCO 8) An advantage of using budgeted costs for transfer pricing among divisions is that

10- (TCO 8) The seller of Product A has no idle capacity and can sell all it can produce at $20 per unit. Outlay cost is $4. What is the opportunity cost, assuming the seller sells internally?

Week 5 Quiz 2

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