ACCT 434 Week 5 – Pricing Decisions Management Control Systems – Quiz
1. Question: (TCO 7) Major influences of competitors, costs, and customers on pricing decisions are factors of
2. Question: (TCO 7) The first step in implementing target pricing and target costing is
3. Question: (TCO 7) The markup percentage is usually higher if the cost base used is
4. Question: (TCO 7) An understanding of life-cycle costs can lead to
5. Question: (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. Question: (TCO 8) A product may be passed from one subunit to another subunit in the same organization. The product is known as
7. Question: (TCO 8) Transfer prices should be judged by whether they promote
8. Question: (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. Question: (TCO 8) An advantage of using budgeted costs for transfer pricing among divisions is that
10. Question: (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?
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