Grading SummaryThese are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the “Details” section below. Date Taken: Time Spent: Points Received: 30 / 30 (100%)Question Type: # Of Questions: # Correct:Multiple Choice 10 10Grade Details 1. Question : (TCO 7) Major influences of competitors, costs, and customers on pricing decisions are factors of Student Answer: supply and demand. activity-based costing and activity-based management. key management themes that are important to managers attaining success in their planning and control decisions. the value-chain concept. 2. Question : (TCO 7) The first step in implementing target pricing and target costing is Student Answer: choosing a target price. determining a target cost. developing a product that satisfies needs of potential customers. performing value engineering. 3. Question : (TCO 7) The markup percentage is usually higher if the cost base used is Student Answer: the full cost of the product. the variable cost of the product. variable manufacturing costs. total manufacturing costs. 4. Question : (TCO 7) An understanding of life-cycle costs can lead to Student Answer: additional costs during the manufacturing cycle. less need for evaluation of the competition. cost-effective product designs that are easier to service. mutually beneficial relationships between buyers and sellers. 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? Student Answer: $49. $43.75. $42. $35. 6. Question : (TCO 8) A product may be passed from one subunit to another subunit in the same organization. The product is known as Student Answer: an interdepartmental product. an intermediate product. a subunit product. a transfer product. 7. Question : (TCO 8) Transfer prices should be judged by whether they promote Student Answer: goal congruence. the balanced scorecard method. a high level of subunit autonomy in decision making. Both 1 and 2 are correct. 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 Student Answer: distress prices. dropped prices. low-average prices. substitute prices. 9. Question : (TCO 8) An advantage of using budgeted costs for transfer pricing among divisions is that Student Answer: it promotes subunit autonomy. the divisions know the transfer price in advance. it usually provides a basis for optimal decision making. overall corporate profitability is usually higher. 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? Student Answer: $4 $16 $20 $24
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