A(n) _____________ is the minimum cost that can be incurred, which when subtracted from the selling...
A(n) _____________ is the minimum cost that can be incurred, which when subtracted from the selling price, allows for a desired profit to be earned.
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relevant cost
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opportunity cost
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incremental cost
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target cost
Homework Answers
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Answer -Target cost Target cost is the minimum cost that can be incurred, which when subtracted from the selling price, allows for a desired profit to be earned. |
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A(n) _____________ is the minimum cost that can be incurred,
which when subtracted from the selling...
Target total cost is described by which of the following Target total cost is described by...
Target total cost is described by which of the following
Target total cost is described by which of the following? A. Revenue at market price plus desired profit B. Revenue at market price minus desired profit C. Total cost plus desired profit Total cost minus actual cost
Unit cost relevant for setting a minimum selling price
Barker company has a single product called a Zet. The company normally produces and sells 80,000 Zets each year at a selling price of $40 per unit. The company's unitcosts at this level of activity are given below:Direct Materials $9.50Direct Labor $10.00Variable Manufacturing Overhead $2.80Fixed Manufacturing Overhead $5.00 ($400,000 Total)Variable Selling Expenses $1.70Fixed Selling Expenses $4.50 ($360,000 Total)Total Cost Per Unit $33.50The company has 500 Zets on hand that were produced last month and have small blemishes. Due to the...
Which factor is not relevant in deciding whether or not to accept a special order? Incremental...
Which factor is not relevant in deciding whether or not to accept a special order? Incremental revenue that will be earned Additional costs that will be incurred The effect that the order will have on the company's regular sales volume and selling prices The average cost of production if the special order is accepted
a method in which a products cost is determined by subtracting profit margin from its selling...
a method in which a products cost is determined by subtracting profit margin from its selling price
Summit Products, Inc. is interested in producing and selling an improved widget. Market research indicates that...
Summit Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $76 for such a widget and that 36,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $52. 1. If Summit Products requires a 25% return on sales to undertake production, what is the target cost for the new widget? a. $57.00 b. $19.00 c. $63.00 d....
17. Direct costs: A. are incurred to benefit B. are incurred due to a spe C....
17. Direct costs: A. are incurred to benefit B. are incurred due to a spe C. can be easily traced to D. are the variable Denefit a particular accounting period. due to a specific decision. traced to a particular cost object. sts of producing a product. 18. The main difference between van A. whether variable manufactum B. whether fixed manufacturing Cosu C. whether fixed manufact included in product costs. D. whether selling and en variable costing and absorption costing ufacturing...
c. The per-unit variable costs change d. Per-unit sales prices change 7. The amount of increase...
c. The per-unit variable costs change d. Per-unit sales prices change 7. The amount of increase or decrease in cost that is expected from a particular course of action as compared to an alternative is termed: a. Period cost. b.Product cost. c. Differential cost. d. Discretionary cost. 8. A cost that will not be affected by later decisions is termed: a. Historical cost. b. Differential cost. c. Sunk cost. d. Replacement cost. The amount of income that would result from...
Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price...
Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $418,900. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $220,100. units 3. Construct a cost-volume-profit chart on paper assuming maximum sales of 11,800 units within the relevant range. From your chart, indicate whether each of the following sales levels...
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...
A company would typically use backflushing when inventory levels are kept at a minimum (such as...
A company would typically use backflushing when inventory levels are kept at a minimum (such as in just-in-time-JIT) when inventory levels are kept at a maximum (such as in a tradition inventory manufacturing system) when manufacturing costs are flushed both a and b Which of the following is not an assumption of cost-volume-profit analysis? Selling prices change only at the end of the month Costs can be thought of as fitting a linear function within the relevant range Sale mix...
Target total cost is described by which of the following
Target total cost is described by which of the following? A. Revenue at market price plus desired profit B. Revenue at market price minus desired profit C. Total cost plus desired profit Total cost minus actual cost
17. Direct costs: A. are incurred to benefit B. are incurred due to a spe C. can be easily traced to D. are the variable Denefit a particular accounting period. due to a specific decision. traced to a particular cost object. sts of producing a product. 18. The main difference between van A. whether variable manufactum B. whether fixed manufacturing Cosu C. whether fixed manufact included in product costs. D. whether selling and en variable costing and absorption costing ufacturing...
c. The per-unit variable costs change d. Per-unit sales prices change 7. The amount of increase or decrease in cost that is expected from a particular course of action as compared to an alternative is termed: a. Period cost. b.Product cost. c. Differential cost. d. Discretionary cost. 8. A cost that will not be affected by later decisions is termed: a. Historical cost. b. Differential cost. c. Sunk cost. d. Replacement cost. The amount of income that would result from...
Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $418,900. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $220,100. units 3. Construct a cost-volume-profit chart on paper assuming maximum sales of 11,800 units within the relevant range. From your chart, indicate whether each of the following sales levels...
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...
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