Multiple Choice
Answer the following questions using the information below:
Elliott Manufacturing has decided to produce a new interior door to complement its exterior door line.The new door is expected to sell for $60 each,and the annual target sales volume for the doors is 20 000.Elliott has target operating profit of 20% of sales.
-When target costing and target pricing are used together:
A) the focus of target pricing is to undercut the competition.
B) the target cost is established first,then the target price.
C) target costs are generally higher than current costs.
D) the target cost is the estimated long-run cost that enables a product or service to achieve a desired profit.
Correct Answer:
Verified
Correct Answer:
Verified
Q25: Capacity costs arise in non-production parts of
Q26: Managers cannot reduce the costs of capacity
Q27: Explain the difference between locked-in costs and
Q28: Normal capacity utilisation:<br>A)when used for product costing
Q29: Estimating capacity costs is unique to manufacturing
Q31: A graph comparing locked-in costs with incurred
Q32: Answer the following questions using the information
Q33: A locked-in cost is a(n):<br>A)cost that can
Q34: Target operating profit per unit is the
Q35: Cost accounting systems focus on when costs