1. Cost allocation could be a variable input to encourage design of products that are simpler to manufacture and less costly to service. 2. In long-run pricing, decisions should consider all manufacturing and non-manufacturing costs but should consider all future direct and indirect costs as irrelevant. 3. Reverse engineering can be used to analyze competitors' products to determine product designs and materials and to understand the technologies competitors use. 4. Fluctuations in exchange rates between different countries' currencies affect costs and pricing decisions of a company 5. Selling prices computed under cost-plus pricing are prospective prices that may or may not actually be charged to customers. 6. There are alternatives ways of measuring the cost base when applying a cost-plus method to pricing but research shows that many managers prefer to use
RUE OR FALSE
1. Cost allocation could be a variable input to encourage design of products that are simpler to manufacture and less costly to service.
2. In long-run pricing, decisions should consider all manufacturing and non-
3. Reverse engineering can be used to analyze competitors' products to determine product designs and materials and to understand the technologies competitors use.
4. Fluctuations in exchange rates between different countries' currencies affect costs and pricing decisions of a company
5. Selling prices computed under cost-plus pricing are prospective prices that may or may not actually be charged to customers.
6. There are alternatives ways of measuring the cost base when applying a cost-plus method to pricing but research shows that many managers prefer to use full cost as the cost base.
7. Monopolists can charge prices without limitations as there is no competition for the product or service the monopolist produces.
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