Exam 13: Cost Planning for the Product Life Cycle: Target Costing,Theory of Constraints,and Strategic Pricing

Reduced time-to-market,reduced expected service cost,and ease-of-manufacture are critical success factors at which stage of the cost life cycle?

To achieve the target cost,Lens Care plans to reduce materials handling costs.How many parts must be removed from B-13 in order to achieve the target cost for B-13 (round up to whole units)?

The sequence of activities within the firm which begins with research and development,followed by design,and manufacturing,marketing/distribution,and customer service is the:

Lens Care Inc.(LCI)manufactures specialized equipment for polishing optical lenses.There are two models - one mainly used for fine eyewear (F-32)and another for lenses used in binoculars,cameras,and similar equipment (B-13). The manufacturing cost of each unit is calculated using activity-based costing,using the following manufacturing cost pools: LCI currently sells the B-13 model for $1,775 and the F-32 model for $1,220.Manufacturing costs and activity usage for the two products are as follows: The product cost for model B-13 is:

High Point Furniture manufactures a high-quality dining table,which is offered in both oak and walnut.The demand for the tables is 800 units for the oak table and 1500 for the walnut table.The tables are priced at $495 and $995 for the oak and walnut tables,respectively.The materials cost is $210 for the oak table and $430 for the walnut table.In addition,High Point has the following manufacturing information for the four manufacturing processes (receiving,preparation,assembly,and finishing),showing the amount of time (in minutes)required for each table for each process,and the total minutes of time available for each process.

Electronic Component Company is a producer of high-end video and music equipment.ECC currently sells its top of the line "ECC" DVD player for a price of $250.It costs ECC $210 to make the player.ECC's main competitor is coming to market with a new DVD player that will sell for a price of $220.ECC feels that it must reduce its price to $220 in order to compete.The sales and marketing department of ECC believes the reduced price will cause sales to increase by 15%.ECC currently sells 200,000 DVD players per year. Irrespective of the competitor's price,what is EEC's required selling price if the target profit is 25% of sales and current costs cannot be reduced?

Throughput margin is defined as sales less:

Which one of the following is true concerning TOC?

The current profit per unit is:

Electronic Component Company is a producer of high-end video and music equipment.ECC currently sells its top of the line "ECC" DVD player for a price of $250.It costs ECC $210 to make the player.ECC's main competitor is coming to market with a new DVD player that will sell for a price of $220.ECC feels that it must reduce its price to $220 in order to compete.The sales and marketing department of ECC believes the reduced price will cause sales to increase by 15%.ECC currently sells 200,000 DVD players per year. What is the target cost if target profit is 20% of sales and ECC must meet the competitive price of $220?

PharmCo Manufacturing operates a contract manufacturing plant in London,England.The plant produces a variety of pharmaceutical drugs for companies around the world.Cycle time is a critical success factor for PharmCo,which has developed a number of measures of manufacturing speed.The company has studied the matter and found that competitive contract manufacturers have manufacturing cycle efficiency (MCE)time of about 40 percent.When last measured,PharmCo's MCE was 35 percent.At PharmCo,cycle time is defined as beginning at the point when the order taking is complete. Some key measures from the most recent month's production,averaged over all the jobs during the period,are as follows:

_________________________ is an important first step in value engineering because it identifies critical consumer preferences that will define the product's desired functionality.

Cling Co.produces and sells three products (X,Y,and Z).The following data relate to the three products.Labor is a fixed cost.

In order to reduce costs so as to reach the desired target cost,Quality Chairs should also focus on reducing the cost of:

The management accountant at the Huang Manufacturing Company has collected the following data in preparation for a life cycle analysis on one of its products,a leaf blower:

Suzy Co.produces and sells three products (X,Y,and Z).The following data relate to the three products: Which is the most profitable product if there is no constraint on labor time?

Which of the following phases are included in the sales life cycle?

Bell Company produces and sells three products (A,B,C).The following data relate to the three products.

Which of the following are computer-based databases that include comprehensive information about the firm's cost drivers?

Many firms choose to achieve target cost through redesign of the product or service because they recognize that design decisions: