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arget costing is reversal of: a. Penetrating pricing b. Marginal cost c. Skimming pricing d. Cost plus model

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 5SEQ

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

19-Target costing is reversal of:

Penetrating pricing

Marginal cost

Skimming pricing

Cost plus model

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Discuss how financial data prepared on the basis of variable costing can assist management in the development of short-run pricing policies.
25) Target costing is reversal of: a. Skimming pricing b. Marginal cost c. Penetrating pricing d. Cost plus model
Target costing is reversal of: a. Marginal cost b. Skimming pricing c. Penetrating pricing d. Cost plus model
11. Choose the scope of cost accounting that is primarily prepared for different level of management. a.Cost accounting b.Cost reports c.Cost analysis d.Cost comparison 12. according to which method of pricing, issues are made with the current market price. a.First in first out b.Simple average c.Weighted average d.Last in first out
17. Which cost estimation method is the least accurate or the most subjective? account analysis scatter graph method regression analysis engineering method high-low method
20-Which of the following term is used to denote, the response of cost to the change in the volume of production? a. Cost response b. Cost trend c. Cost behavior d. Cost accumulation
17. The calculation to determine target cost is Group of answer choices variable manufacturing costs + selling and administrative variable costs. variable manufacturing costs + fixed manufacturing costs. sales price – (variable manufacturing costs + fixed manufacturing costs). sales price – desired profit.
Although the cost-plus approach to product pricing may be used by management as a general guideline, what are some examples of other factors that managers should also consider in setting product prices?
How does the target cost concept differ from cost-plus approaches?
How does the target cost concept differ from cost-plus approaches?
Although the cost-plus approach to product pricing may be used by management as a general guideline, what are examples of other factors that managers should consider in setting product prices?
Although the cost-plus approach to product pricing may be used by management as a general guideline, what are examples of other factors that managers should consider in setting product prices?