ACCT 434 WEEK 5 QUIZ – DEVRY
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ACCT 434 WEEK 5 QUIZ – DEVRY
1.(TCO 7) Major influences of competitors,
costs, and customers on pricing decisions are factors of (Points : 5)
2. (TCO 7) The first step in implementing
target pricing and target costing is (Points : 5)
3. (TCO 7) The markup percentage
is usually higher if the cost base used is (Points : 5)
4. (TCO 7) Life-cycle budgeting is
particularly important when (Points : 5)
5. (TCO 7) Each month, Haddon Company
has $275,000 total manufacturing costs (20% fixed) and $125,000 distribution
and marketing costs (36% fixed). Haddon’s monthly sales are $500,000. The
markup percentage on variable costs to arrive at the existing (target) selling
price is (Points : 5)
6. (TCO 8) The benefits of a
decentralized organization are greater when a company (Points : 5)
7. (TCO 8) Transfer prices should
be judged by whether they promote (Points : 5)
8. (TCO 8) A benefit of using a
market-based transfer price is the (Points : 5)
9. (TCO 8) The range over which
two divisions will negotiate a transfer price is (Points : 5)
10. (TCO 8) Division A sells
soybean paste internally to Division B, which, in turn, produces soybean
burgers that sell for $5 per pound. Division A incurs costs of $0.75 per pound
and Division B incurs an additional cost of $2.50 per pound. What is Division
A’s operating income per pound, assuming the transfer price of the soybean
paste is set at $1.25 per pound? (Points : 5)
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