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Unformatted text preview: CHAPTER 8 Pricing ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises A Problems B Problems * 1. Compute a target cost when a product price is determined by the market. 1, 2 1 1, 2, 3 * 2. Compute a target sell ing price using costplus pricing. 3, 4, 5, 6, 7, 8 2, 3, 4, 5 3, 4, 5, 6, 7 1A, 2A 1B, 2B * 3. Use time and material pricing to determine the cost of services provided. 9, 10 6 8, 9, 10 3A 3B * 4. Determine a transfer price using the negoti ated, costbased, and marketbased approaches. 11, 12, 13, 14, 15, 16, 17 7, 8, 9 11, 12, 13, 14, 15 4A, 5A, 6A 4B, 5B, 6B * 5. Explain the issues that arise when transfer ring goods between divi sions located in coun tries with different tax rates. 18 *6. Determine prices using absorption cost pricing and variable cost pricing. 19, 20 10, 11 16, 17, 18 7A, 8A 7B, 8B * Note: All asterisked Questions, Exercises, and Problems relate to material contained in the appendix * to the chapter. 81 ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description Difficulty Level Time Allotted (min.) 1A Use costplus pricing to determine various amounts. Simple 20 30 2A Use costplus pricing to determine various amounts. Simple 20 30 3A Use time and material pricing to determine bill. Simple 20 30 4A Determine minimum transfer price with no excess capacity and with excess capacity. Moderate 20 30 5A Determine minimum transfer price with no excess capacity. Moderate 20 30 6A Determine minimum transfer price under different situations. Moderate 20 30 *7A * Compute the target price using absorption cost pricing and variable cost pricing. Moderate 30 40 *8A * Compute various amounts using absorption cost pricing and variable cost pricing. Complex 40 50 1B Use costplus pricing to determine various amounts. Simple 20 30 2B Use costplus pricing to determine various amounts. Simple 20 30 3B Use time and material pricing to determine bill. Simple 20 30 4B Determine minimum transfer price with no excess capacity and with excess capacity. Moderate 20 30 5B Determine minimum transfer price with no excess capacity. Moderate 20 30 6B Determine minimum transfer price under different situations. Moderate 20 30 *7B * Compute the target price using absorption cost pricing and variable cost pricing. Moderate 30 40 *8B * Compute various amounts using absorption cost pricing and variable cost pricing. Complex 40 50 82 BLOOM’S TAXONOMY TABLE 83 STUDY OBJECTIVES 1. COMPUTE A TARGET COST WHEN A PRODUCT PRICE IS DETERMINED BY THE MARKET. 2. COMPUTE A TARGET SELLING PRICE USING COST PLUS PRICING. 3. USE TIME AND MATERIAL PRICING TO DETERMINE THE COST OF SERVICES PROVIDED. 4. DETERMINE A TRANSFER PRICE USING THE NEGOTIATED, COSTBASED, AND MARKETBASED APPROACHES....
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This note was uploaded on 05/08/2008 for the course ACC 210 taught by Professor John during the Spring '08 term at South Central College: Faribault Campus.
 Spring '08
 john
 Accounting, Pricing

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