Chapter 07 Quiz
1. Which of the following is NOT true about pricing decisions?
a. Customers NEVER have an influence on demand and supply
2. Kaizen is a continuous improvement technique used to the time it takes to do a task, eliminate waste, and improve operating efficiency and productivity.
a. True
3. The higher the price a monopolist sets, the lower the demand for the monopolist’s product as customers seek substitute products or forgo buying the product.
a. True
4. Companies operating in less competitive markets offer products or services that differ from each other.
a. True
5. $6,250,000 on the sales order activity and 5,500 sales orders.
a. = 6250000/5500 batch-level costs.
6. The lower the cost of producing a product, the greater the quantity of product the company is willing to supply.
a. True
7. _____ tracks and accumulates business function costs across the entire value chain from a product’s initial R&D to its final customer service and support.
a. Life-cycle costing
8. Invested $3,500,000. $250,000 annually. Sales of 800 at $1,100.00 each
a. Target Rate of Return =250000/3500000 = 7.14%
9. Companies operating in competitive markets much NOT accept the prices set by the market.
a. False
10. Sales-order cost are
a. Batch-level costs
11. In reference to locked-in cost curves and the cost-incurrence curves, the top curve plots:
a. Cumulative locked-in cost
12. Investment capital $80,000,000 and 16% target rate of return on the investment of 150,000 units.
a. Target Annual Operating Income and the target operating income per unit
= 80000000*.016 =12,800,000; = 12,800,000/150,000 = $85.33
13. To set long-run process, managers calculate the ___ -cost of producing and selling a product.
a. Full-cost
14. The target cost per units is NEVER lower than the existing full cost of the product
a. False
15. Invested 2,500,000. $245,000 annually. Actual sales of 700 planks at $500. Target rate on of return on the investment of 15%.
a. 2.33%
1. $6,250,000 on the sales order activity
a. Customers NEVER have an influence on demand and supply
2. Kaizen is a continuous improvement technique used to the time it takes to do a task, eliminate waste, and improve operating efficiency and productivity.
a. True
3. The higher the price a monopolist sets, the lower the demand for the monopolist’s product as customers seek substitute products or forgo buying the product.
a. True
4. Companies operating in less competitive markets offer products or services that differ from each other.
a. True
5. $6,250,000 on the sales order activity and 5,500 sales orders.
a. = 6250000/5500 batch-level costs.
6. The lower the cost of producing a product, the greater the quantity of product the company is willing to supply.
a. True
7. _____ tracks and accumulates business function costs across the entire value chain from a product’s initial R&D to its final customer service and support.
a. Life-cycle costing
8. Invested $3,500,000. $250,000 annually. Sales of 800 at $1,100.00 each
a. Target Rate of Return =250000/3500000 = 7.14%
9. Companies operating in competitive markets much NOT accept the prices set by the market.
a. False
10. Sales-order cost are
a. Batch-level costs
11. In reference to locked-in cost curves and the cost-incurrence curves, the top curve plots:
a. Cumulative locked-in cost
12. Investment capital $80,000,000 and 16% target rate of return on the investment of 150,000 units.
a. Target Annual Operating Income and the target operating income per unit
= 80000000*.016 =12,800,000; = 12,800,000/150,000 = $85.33
13. To set long-run process, managers calculate the ___ -cost of producing and selling a product.
a. Full-cost
14. The target cost per units is NEVER lower than the existing full cost of the product
a. False
15. Invested 2,500,000. $245,000 annually. Actual sales of 700 planks at $500. Target rate on of return on the investment of 15%.
a. 2.33%
1. $6,250,000 on the sales order activity