20- (Choose the right answer). _______________ is a management strategy that helps providers that may find...
20- (Choose the right answer).
_______________ is a management strategy that helps providers that may find the organization in a situation where prices are set by the market and have little power to negotiate.
A. marginal cost pricing
B. full cost pricing
C. target costing
D. price shifting
Homework Answers
Option C is correct i.e Target Costing
Under this pricing method the selling price is determined first. After determining the selling price the desired profit will be deducted from determined selling price for calculating the Target Cost.
For example, an items selling price is determined $ 100 and desired profit on this product is $ 20 per unit. In this case, the target cost will be 100-20= $80.
Therefore, as stated in given question, the price are set by market in target costing price method and the selling price can be negotiated upto the desired profit level.
Add Answer to:
20- (Choose the right answer).
_______________ is a management strategy that helps providers
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19- (Choose the right answer). ______________ takes the prices paid for healthcare services and looks at ways to minimize cost to achieve a set profit A. marginal cost pricing B. full cost pricing C. target costing D. price shifting
PART III COVERS CLO 5 uan 4 marks Question 1 Choose the correct answer. Each question...
PART III COVERS CLO 5 uan 4 marks Question 1 Choose the correct answer. Each question carries 0.5 mark 1. If a firm can change market prices by altering its output, then it A. Has market power. B. Faces a flat demand curve. C. Is a price taker D. Engages in marginal cost pricing. 2. If economic profits are earned in a competitive market, then over time: A. Additional firms will enter the market. B. The market supply curve will...
e) After completing Exercise 5, what is the Target Variable Cost per Unit? See circle. Custom...
e) After completing Exercise 5, what is the Target
Variable Cost per Unit? See circle.
Custom Touch Inc. produces high quality desk organizers. A
recent analysis of fixed and variable costs per unit is as
follows:
Pricing Strategy: Companies typically use one of two strategies when pricing its products Target Pricing (Costing): Used in competitive environments. This approach assumes that market forces largely set the price. So, the company must engineer their cost structure to compete Cost Plus Pricing: Assumes...
Instructions: Choose the best answer (True or False) for record a "T" for True or a...
Instructions: Choose the best answer (True or False) for record a "T" for True or a "F" for False corresponding letters on the line to the lef "A" for True or a "B" for False on the SCANTRON sheet for rows 16 thru 50 21. In incremental analysis, total variable costs will always change under alternative courses of action, and total fixed costs will always remain constant. Decision-making involves choosing among altemative courses of action. 22. 23. A special one-time...
Please indicate the right answer and explain. Thank you! Click on the icon to read the...
Please indicate the right answer and explain. Thank you!
Click on the icon to read the news clip, then answer the following questions The graph shows the market for Microsoft Windows. Price (dollars per copy) 800 The graph will plot data needed to answer this question. If the marginal cost of makgaoy of the full version of Windows that includes Interned Explorer (IE) is zero, Microsoft will set the price of Windows at Sper copy. If the average fixed cost...
Consider a Bertrand duopoly in a market where demand is given by Q firm has constant marginal cost equal to 20 100 - P. Each (a) If the two firms formed a cartel, what would they do? How much profit...
Consider a Bertrand duopoly in a market where demand is given by Q firm has constant marginal cost equal to 20 100 - P. Each (a) If the two firms formed a cartel, what would they do? How much profit would eaclh firm make? (6 marks) (b) Explain why the outcome in part (a) is not a Nash Equilibrium. Find the set of Nash Equilibria and explain why it/they constitute Nash equilibria. (6 marks) (c) Now suppose that instead of...
(10 marks) A telecommunications firm with market power is considering various pricing strategies over the provision...
(10 marks) A telecommunications firm with market power is considering various pricing strategies over the provision of cellular voice and data (i.e. text messaging and internet) services to three types of customers. The marginal cost of serving an additional customer with any of the services is zero, but the firm cannot observe customer type. The table below summarizes the reservation prices ($/month) and market share for the services by customer type: Bundle Customer Market Type Share Millennial 30% Standard 50%...
Newcastle Division Topic: CVP. Probabilities and Target profits A meeting of senior managers at the Newcastle...
Newcastle Division Topic: CVP. Probabilities and Target profits A meeting of senior managers at the Newcastle Division has been called to discuss the pricing strategy for a new product. Part of the discussion will focus on the problem of s volume. In the last year a significant number of new products have failed to achieve their forecast sales volumes. The financial accountant has already stated that the profit for the year-end will be lower than budget and the main reason...
Venus plc (Venus) manufactures fibre optic cables. This is an increasingly competitive market and the Chief...
Venus plc (Venus) manufactures fibre optic cables. This is an increasingly competitive market and the Chief Financial Officer (CFO) of Venus has suggested that the company's pricing policy should change. Specifically, he has suggested that Venus' quotation for a new contract should be based on target costing. The costs relevant to this are listed below and the prices in this market are all quoted on a per metre basis: Target price $196 per metre of cable. The contract is estimated...
1) Decreasing returns to scale may occur as increasing the amount of inputs used A) increases...
1) Decreasing returns to scale may occur as increasing the amount of inputs used A) increases specialization B) may cause coordination difficulties. C) always increases the amount of output produced D) increases efficiency. 2) Which of the following statements is NOT true? A) AFC = AC - AVC C) AVC = wage/MPL B) AC = AFC + AVC D) C=F-VC 3) The more elastic the demand curve, a monopoly A) will have a larger Lemer Index. will face a lower...
PART III COVERS CLO 5 uan 4 marks Question 1 Choose the correct answer. Each question carries 0.5 mark 1. If a firm can change market prices by altering its output, then it A. Has market power. B. Faces a flat demand curve. C. Is a price taker D. Engages in marginal cost pricing. 2. If economic profits are earned in a competitive market, then over time: A. Additional firms will enter the market. B. The market supply curve will...
e) After completing Exercise 5, what is the Target
Variable Cost per Unit? See circle.
Custom Touch Inc. produces high quality desk organizers. A
recent analysis of fixed and variable costs per unit is as
follows:
Pricing Strategy: Companies typically use one of two strategies when pricing its products Target Pricing (Costing): Used in competitive environments. This approach assumes that market forces largely set the price. So, the company must engineer their cost structure to compete Cost Plus Pricing: Assumes...
Instructions: Choose the best answer (True or False) for record a "T" for True or a "F" for False corresponding letters on the line to the lef "A" for True or a "B" for False on the SCANTRON sheet for rows 16 thru 50 21. In incremental analysis, total variable costs will always change under alternative courses of action, and total fixed costs will always remain constant. Decision-making involves choosing among altemative courses of action. 22. 23. A special one-time...
Please indicate the right answer and explain. Thank you!
Click on the icon to read the news clip, then answer the following questions The graph shows the market for Microsoft Windows. Price (dollars per copy) 800 The graph will plot data needed to answer this question. If the marginal cost of makgaoy of the full version of Windows that includes Interned Explorer (IE) is zero, Microsoft will set the price of Windows at Sper copy. If the average fixed cost...
Consider a Bertrand duopoly in a market where demand is given by Q firm has constant marginal cost equal to 20 100 - P. Each (a) If the two firms formed a cartel, what would they do? How much profit would eaclh firm make? (6 marks) (b) Explain why the outcome in part (a) is not a Nash Equilibrium. Find the set of Nash Equilibria and explain why it/they constitute Nash equilibria. (6 marks) (c) Now suppose that instead of...
(10 marks) A telecommunications firm with market power is considering various pricing strategies over the provision of cellular voice and data (i.e. text messaging and internet) services to three types of customers. The marginal cost of serving an additional customer with any of the services is zero, but the firm cannot observe customer type. The table below summarizes the reservation prices ($/month) and market share for the services by customer type: Bundle Customer Market Type Share Millennial 30% Standard 50%...
Newcastle Division Topic: CVP. Probabilities and Target profits A meeting of senior managers at the Newcastle Division has been called to discuss the pricing strategy for a new product. Part of the discussion will focus on the problem of s volume. In the last year a significant number of new products have failed to achieve their forecast sales volumes. The financial accountant has already stated that the profit for the year-end will be lower than budget and the main reason...
Venus plc (Venus) manufactures fibre optic cables. This is an increasingly competitive market and the Chief Financial Officer (CFO) of Venus has suggested that the company's pricing policy should change. Specifically, he has suggested that Venus' quotation for a new contract should be based on target costing. The costs relevant to this are listed below and the prices in this market are all quoted on a per metre basis: Target price $196 per metre of cable. The contract is estimated...
1) Decreasing returns to scale may occur as increasing the amount of inputs used A) increases specialization B) may cause coordination difficulties. C) always increases the amount of output produced D) increases efficiency. 2) Which of the following statements is NOT true? A) AFC = AC - AVC C) AVC = wage/MPL B) AC = AFC + AVC D) C=F-VC 3) The more elastic the demand curve, a monopoly A) will have a larger Lemer Index. will face a lower...
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