How can a company track the extent of price discounting on a customer-by-customer basis?

Q: Cost accounting is used as a means of fixing a selling price. Select one: True False

A: Cost accounting is a method of managerial accounting which is used to calculate the total production…

Q: From the following: What is the industry average price–earnings ratio? What is Ragan’s…

A: The industry average PE ratio can be calculated as follows : P/E ratio = Price earningsPutting…

Q: Under what circumstances is relative sales value anappropriate basis for determining the price…

A: Relative sales value is an appropriate basis for pricing inventory when a group of changing units is…

Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…

A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…

Q: Can a company use a target pricing model without a follow-on cost-savings sharing agreement? Why or…

A: Target price is the price at which the stock future price is estimated grounded on earnings…

Q: How do the costs of doing business affect prices?

A: The cost of producing a product or service that a company sells is usually referred to as the cost.…

Q: How is standalone selling price defined?

A: Performance Obligation: Performance obligation refers to the obligation that the seller to provide…

Q: How might a company simplify its use of the NRV method when final selling prices can vary sizably in…

A: Net Realizable Value (NRV) Method: NRV method is a method of joint cost allocation which takes into…

Q: What do you understand by rate of markup on cost and rate of markup on selling price, illustrate…

A: Answer: Mark-up is nothing but the difference between a good or service’s selling price and its…

Q: What is the percentage of sales approach

A: Percentage of Sales Approach This is an important tool in which the management are using for the…

Q: 1.  Discuss factors that a company might look at when determining prices for its products.

A: The factors determining the price of the company's product is given below, Cost of production- The…

Q: Define how costs of goods and other costs such as taxes contribute to the performance besides sales?

A: Performance of the business is usually measured by the ability of the company to generate the net…

Q: Discuss the decisions companies face when initiating price increases.

A: Price changing decision is a part of management decision making where they decide the appropriate…

Q: Explain the Sales Comparison Approach?

A: Sales comparison approach is comparative market analysis that compares a property to other…

Q: What questions should managers answer when considering special pricing orders?

A: Definition:   Special Pricing: When businesses get Special orders from its customers for bulk…

Q: Discuss the concepts of over- and understoring and describe their relationship to the Index of…

A: The Index of Retail Saturation (IRS) is the ratio of available supply to demand for a product…

Q: How do we calculate cost of sales

A: The net sales are calculated as difference between sales and sales discounts.

Q: How cost accounting covers the problem of Evaluation of alternative while buying

A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…

Q: When sales are made with a right of return, the company_ а. should recognize revenue for the full…

A: The revenue would be posted in the income statement of the company. The expenses are deducted form…

Q: Explain sales cutoff tests.

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: Retail Pricing Practice Chart

A: Retail price refers to the sum of Cost and Markup. i,e, Cost+Markup= Retail. MU% or markup% =…

Q: What questions should managers answer when setting regular prices?

A: Following are the major factors which managers should answer when the regular prices are fixed:…

Q: If a company returns an item to a supplier, the supplier will record the return as: shrinkage. O a…

A: The item purchased by the company from the supplier is Purchase for the company and Sales for the…

Q: How to calculate cost of sales

A: Introduction: Ending Inventory: The unsold inventory for the period is called Ending Inventory.…

Q: Which tool can be used to easily calculate the change in profit resulting from a change in sales…

A: Cost-volume-profit analysis: Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to…

Q: Conceptually, how would you evaluate a quantity discount offerfrom a supplier?

A:

Q: Retailers often use psychological pricing as a price-adjustment strategy. Explain this pricing…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Describe Estimating Supplier Costs Using Reverse Price Analysis?

A: Reverse pricing analysis is a pricing model which allows its consumers in order to establish the…

Q: what are the advantages of calculating a supplier performance index?

A: Supplier Performance Index: A supplier performance index is used to determine the total cost of…

Q: Define Return on sales

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: Operating leverage measures the: Change in profit when sales changes. Change in Contibution when…

A: Solution: Operating leverage = Contribution margin / Net income  Therefore Operating leverage…

Q: Describe the approaches to estimate stand-alone selling prices.

A:

Q: What is the purpose of the lower of cost or net realizable value rule?

A: lower of cost or net realizable value rule(LCNRV method):Inventory should be valued at the lower of…