DEVRY ACCT 434 W EEK 5 P RICING D ECISIONS M ANAGEMENT C ONTROL S YSTEMS Check this A+ tutorial guideline at

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DEVRY ACCT 434 W EEK 5 P RICING D ECISIONS M ANAGEMENT C ONTROL S YSTEMS Check this A+ tutorial guideline at decisions-management-control-systems For more classes visit 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?