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Unformatted text preview: Incorrect. All of the following are correct statements about the target price except it is determined after the company sets its desired profit amount. is determined after the company has identified its market and does market research. is used to determine a product's target cost. is the price the company believes would place it in the optimal position for its target audience Correct. A company that is a price taker would most likely use which of the following methods? Cost plus pricing, absorption approach Time-and-material pricing Cost plus pricing, contribution approach Target costing Correct. The desired ROI per unit is calculated by dividing the ROI by the estimated volume and subtracting the result from the unit cost. multiplying the ROI times the investment and dividing by the estimated volume. multiplying the unit selling price by the ROI. dividing the total cost by the estimated volume and multiplying by the ROI Correct. When using cost-plus pricing, which amount per unit does not change when the expected volume differs from the budgeted volume?...
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This note was uploaded on 11/07/2011 for the course ACCOUNTING 560 taught by Professor Alper during the Fall '09 term at Strayer.
- Fall '09