Quiz 6-solution

Quiz 6-solution - [ACCT3104] MANAGERIAL COSTING AND CONTROL...

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[ACCT3104] MANAGERIAL COSTING AND CONTROL (ST LUCIA AND IPSWICH). SEMESTER 2, 2008 (ACCT3104S_5860IPX) > ASSESSMENT > QUIZZES > REVIEW ASSESSMENT: QUIZ 1 12TH EDN Review Assessment: quiz 1 12th edn
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User Yuen Hang Tang Submitted 8/28/08 4:58 AM Name quiz 1 12th edn Status Completed Score 27 out of 30 points Time Elapsed 1 hours, 3 minutes, and 14 seconds out of 1 hours and 5 minutes allowed. Instructions
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Question 1 1 out of 1 points When target costing and target pricing are used together: Selected Answer: the target cost is the estimated long-run cost that enables a product or service to achieve a desired profit Question 2 1 out of 1 points A graph comparing locked-in costs with incurred costs will have: Selected Answer: locked- in costs rising much faster initially than the incurred cost, but joining the incurred cost line at the completion of the value-chain functions Question 3 1 out of 1 points Value engineering can reduce all of the following EXCEPT:
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Selected Answer: existing fixed manufacturing costs Question 4 1 out of 1 points Too high a price may: Selected Answer: deter a customer from purchasing a product Question 5 1 out of 1 points Customer life-cycle costs are the: Selected Answer: costs to the customer for buying and using a product Question 6 1 out of 1 points Fluctuations in exchange rates between different currencies can influence the: Selected Answer: All of these answers are correct.
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Question 7 1 out of 1 points Answer the following questions using the information below: Welch Manufacturing is approached by a European customer to fulfill a one- time-only special order for a product similar to one offered to domestic customers. Welch Manufacturing has a policy of adding a 10% markup to full costs and currently has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $30 Direct labor 10 Manufacturing overhead 15 Marketing costs 5 Fixed costs: Manufacturing overhead 100 Marketing costs 20 Total costs 180 Markup (10%) 18 Estimated selling price $198 For Welch Manufacturing, what is the minimum acceptable price of this one- time-only special order? Selected Answer: $60 Question 8 1 out of 1 points Erickson Company is considering pricing its 5,000-gallon petroleum tanks using either variable manufacturing or full product costs as the base. The variable cost base provides a prospective price of $3,000 and the full cost base provides a prospective price of $3,050. The difference between the two prices is:
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Selected Answer: that the variable cost base estimates fixed costs in the markup percentage while the full cost base includes an amount for fixed costs Question 9 1 out of 1 points A short-run pricing decision typically has a time horizon of less than: Selected Answer: one year Question 10 1 out of 1 points Answer the following questions using the information below: Bicker, Inc., is in the process of evaluating a new product using the following information:
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Quiz 6-solution - [ACCT3104] MANAGERIAL COSTING AND CONTROL...

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