ACCT 434 Week 5 Pricing Decisions Management Control Systems
This file of ACCT 434 Week 5 Pricing Decisions Management Control Systems shows the solutions to the following problems:
1. Major influences of competitors, costs, and customers on pricing decisions are factors of2. The first step in implementing target pricing and target costing is3. The markup percentage is usually higher if the cost base used is4. An understanding of life-cycle costs can lead to5. 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. A product may be passed from one subunit to another subunit in the same organization. The product is known as7. Transfer prices should be judged by whether they promote8. When an industry has excess capacity, market prices may drop well below their historical average. If this drop is temporary, it is called9. An advantage of using budgeted costs for transfer pricing among divisions is that10. 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?