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ACCT 434 Week 5 Pricing Decisions Management Control Systems

ACCT 434 Week 5 Pricing Decisions Management Control Systems
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  • ACCT 434 - Week 5 - Pricing Decisions Management Control Systems - Set 1.docx
  • ACCT 434 - Week 5 - Pricing Decisions Management Control Systems - Set 2.docx

ACCT 434 Week 5 Pricing Decisions Management Control Systems

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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