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Target Cost Approach Quiz

A short run pricing decision typically has a time horizon of less than

The department in the firm that is most likely positioned to identify the customers' needs and their perceived value for a product is the

The costs that should be considered relevant in a company's target-cost calculation are

When the firm uses the target-costing approach to pricing, the target cost per unit is the difference between the per unit target price and the per unit target

Action Toys has a new video game cassette for the upcoming holiday season. It is trying to determine the target cost for the game if the selling price per unit will be set at $55, the going price for video games, and the firm wants to earn a target operating income of 12% of sales. What will the target cost per unit for the new game be?

When the firm is using the target-costing approach, and has implemented value engineering and continuous improvement techniques, the focus should still be on all of the following except for

Which one of the following types of businesses would be most likely to use the cost-plus pricing approach?

ACB Inc. produces a product called Zite. The following cost information is available with respect to Zite on a per unit basis: direct materials, $5; direct labor, $4; variable manufacturing overhead, $2; variable marketing, $2; fixed manufacturing, $4; fixed marketing $2. If ACB wants to earn a 55% markup on the total variable product cost, what is the amount of the markup?

Which one of the following factors would make entry into the market attractive to potential new businesses?

An example of a firm that focuses on using the product differentiation strategy would be

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