“”1) In a noncompetitive environment, the key factor affecting pricing decisions is the:

“”1) In a noncompetitive environment, the key factor affecting pricing decisions is the: A) customer’s willingness to pay B) price charged for alternative products C) cost of producing and delivering the product D) All of these answers are correct. 2) Long-run pricing decisions: A) have a time horizon of less than one year B) include adjusting product mix in a competitive environment C) and short-run pricing decisions generally have the same relevant costs D) use prices that include a reasonable return on investment 3) Relevant costs for pricing a special order include: A) existing fixed manufacturing overhead B) nonmanufacturing costs that will not change even if the special order is accepted C) additional setup costs for the special order D) All of these answers are correct. 4) For long-run pricing decisions, using stable prices has the advantage of: A) minimizing the need to monitor competitors’ prices frequently B) reducing the need to change cost structures frequently C) reducing competition D) helping to build buyer-seller relationships 5) For pricing decisions, full product costs: A) include all costs that are traceable to the product B) include all manufacturing and selling costs C) include all direct costs plus an appropriate allocation of the indirect costs of all business functions D) allow for the highest possible product prices 6) Northwoods manufactures furniture. The cost accounting system estimates manufacturing costs to be $120 per table, consisting of 60% variable costs and 40% fixed costs. The company has surplus capacity available. It is Northwoods’ policy to add a 50% markup to full costs. Northwoods is invited to bid on a one-time-only special order to supply 200 rustic tables. What is the lowest price Northwoods should bid on this special order? A) $21,600 B) $7,200 C) $12,000 D) $14,400 7) A large hotel chain is currently expanding and has decided to decorate all new hotels. Northwoods is invited to submit a bid to the hotel chain. What per unit price will Northwoods MOST likely bid on this long-term order? A) $72 per unit B) $108 per unit C) $180 per unit D) $120 per unit 8) Target pricing: A) is used for short-term pricing decisions B) is one form of cost-based pricing C) estimates are based on customers’ perceived value of the product D) relevant costs are all variable costs 9) The department usually in the best position to identify customers’ needs is the: A) production department B) sales and marketing department C) design department D) distribution department 10) Relevant costs for target pricing are: A) variable manufacturing costs B) variable manufacturing and variable nonmanufacturing costs C) all fixed costs D) all future costs, both variable and fixed 11) Value-added costs: A) are costs that a customer is unwilling to pay for B) include maintenance and repairs of the manufacturing equipment C) are reduced through improved efficiencies D) if eliminated, increase profitability 12) When target costing and target pricing are used together: A) the target cost is established first, then the target price B) the target cost is the estimated long-run cost that enables a product or service to achieve a desired profit C) the focus of target pricing is to undercut the competition D) target costs are generally higher than current costs Answer questions 13 through 16 using the information below:After conducting a market research study, Schultz Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $60. The annual target sales volume for interior doors is 20,000. Schultz has target operating income of 20% of sales.13) What are target sales revenues? A) $960,000 B) $2,000,000 C) $1,200,000 D) None of these answers is correct. 14) What is the target operating income? A) $240,000 B) $300,000 C) $192,000 D) $180,000 15) What is the target cost? A) $900,000 B) $960,000 C) $1,260,000 D) $1,008,000 16) What is the target cost for each interior door? A) $48 B) $58 C) $60 D) $45 17) Direct material costs are locked in when they are: A) designed B) assembled C) sold D) delivered 18) For most products, the majority of costs are incurred during the ________ business function of the value chain. A) design B) manufacturing C) customer-service D) marketing 19) ________ focuses on reducing costs during the manufacturing stage. A) Target costing B) Kaizen costing C) Cost-plus pricing D) Life-cycle costing 20) The cost-plus pricing approach is generally in the form: A) Cost base + Markup component = Prospective selling price B) Prospective selling price – Cost base = Markup component C) Cost base + Gross margin = Prospective selling price D) Variable cost + Fixed cost + Contribution margin = Prospective selling price 21) Life-cycle costing is the name given to: A) a method of cost planning to reduce manufacturing costs to targeted levels B) the process of examining each component of a product to determine whether its cost can be reduced C) the process of managing all costs along the value chain D) a system that focuses on reducing costs during the manufacturing cycle 22) When demand for a product is inelastic and prices are increased, usually demand will: A) increase, and operating profits will increase B) remain the same, and operating profits will increase C) decrease, and operating profits will decrease D) remain the same, and operating profits will decrease 23) Costs are a major factor: A) when demand is price-inelastic B) when demand is price-elastic C) when the opportunity for price discrimination exists D) for peak-load pricing 24) A locked-in cost is a(n): A) opportunity cost that is fixed in the short run B) cost that can be changed in the short run C) cost that has not yet been incurred, but based on decisions that have already been made, will be incurred in the future D) cost that has been incurred, but based on decisions that have already been made, will be not incurred in the future 25) ________ starts with estimated product costs and next adds desired operating income. A) Cost-plus pricing B) Target costing C) Kaizen costing D) Life-cycle budgeting 26) ________ is the fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance such as cost, quality, service, speed, and customer satisfaction. A) Strategy B) Customer perspective C) Learning and growth perspective D) Reengineering 27) Which of the following is NOT true of a good balanced scorecard? A) It tells the story of a company’s strategy by articulating a sequence of cause-and-effect relationships. B) It helps to communicate corporate strategy to all members of the organization. C) It identifies all measures, whether significant or small, that help to implement strategy. D) It uses nonfinancial measures to serve as leading indicators of future financial performance. 28) Managers need to evaluate the success of a strategy by: A) evaluating budget-to-actual variances B) doing a cost-benefit analysis C) linking the sources of operating-income increases to the strategy D) evaluating the level of bonus compensation 29) Which component of strategy measures the changes in operating income attributed solely to an increase in the quantity of output between Year 1 and Year 2? A) the growth component B) the price-recovery component C) the productivity component D) the cost leadership component 30) Which component of strategy measures the change in operating income attributable solely to changes in a company’s profit margins between Year 1 and Year 2? A) the growth component B) the price-recovery component C) the productivity component D) the cost leadership component 31) Which component of strategy measures the reduction in costs attributable to a reduction in the quantity of inputs used in Year 2 relative to the quantity of inputs that would have been used in Year 1 to produce the Year 2 output? A) the growth component B) the price-recovery component C) the productivity component D) the cost leadership component 32) Discretionary costs: A) result from a cause-and-effect relationship between the output and the input B) include advertising and executive training costs C) can be variable or fixed in the short run D) pertain to processes that are detailed 33) Rightsizing is another term for: A) growth management B) downsizing C) price recovery analysis D) cost recovery analysis 34) ________ is an organization’s ability to achieve low costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control. A) Strategy B) Product differentiation C) Cost leadership D) Reengineering 35) ________ translates an organization’s mission and strategy into a comprehensive set of performance measures that provide the framework for implementing its strategy. A) Productivity component B) Product differentiation C) Cost leadership D) Balanced scorecard

1) In a noncompetitive environment, the key factor affecting pricing decisions is the:A) customer’s willingness to payB) price charged for alternative productsC) cost of producing and delivering…

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10