Correct Answer QuestionTarget costing calculates cost as_(a) Market price plus desired profit(b) Market price minus desired profit(c) Historical cost plus markup(d) Variable cost plus fixed cost

Target costing determines the cost based on the market price and desired profit margin, aiming to…

Answered: Question Target costing calculates cost…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 17MC: In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs...

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Similar questions

In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs C. total costs D. units of production
Describe how total variable costs and unit variable costs behave with changes in the level of activity
Define and explain contribution margin ratio.
Target costing calculates cost as
Prblm
2. The following total cost graphs indicate which type of cost behavior? A. VARIABLE COST B. FIXED COST C. MIXED COST D. STEP COST
A cost which changes in proportion to changes in volume of activity is called a: * a. fixed cost b. controllable cost c. variable cost d. opportunity cost
An input whose cost is determined by the quantity of input consumed is a A. Fixed cost B. Variable cost C. Step cost D. Variable cost with fixed component
Which of the following best describes a fixed cost? a.Cost representing a fixed proportion of total costs b.Cost directly related to output c.Cost that remains at the same level up to a particular level of output . d.Cost that remains at the same level when output increases.
Select the correct statement concerning the cost-volume-profit graph at right: a. The point identified by "B" is the break-even point. b. Line F is the variable cost line. c. At point B, profits equal total costs. d. Line E is the total cost line. Line F Line E Line D
On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the difference represents Select one: O A. a positive return on the investment O B. a net loss O C. net income O D. not enough information is presented
Select the correct statement concerning the cost-volume-profit graph at right: At point B, profits equal total costs. Line E is the total cost line. Line F is the variable cost line. The point identified by "B" is the break-even point.

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Question Target costing calculates cost as_ (a) Market price plus desired profit (b) Market price minus desired profit (c) Historical cost plus markup (d) Variable cost plus fixed cost