Grading Summary
These are the automatically
computed results of your exam.
Grades for essay questions, and
comments from your instructor, are
in the "Details" section below.
Question Type:
Multiple Choice
Date Taken:
Time Spent:
Points Received:
30 / 30 (100%)
# Of Questions:
10
# Correct:
10
Grade Details
1. Question :
Student Answer:
(TCO 7) Major influences of competitors, costs, and customers
on pricing decisions are factors of
supply and demand.
activity-based costing and activity-based management.
key management themes that are important to managers
attaining success in their planning and control decisions.
Instructor
Explanation:
Points Received:
the value-chain concept.
Chapter 12, Page 430
3 of 3
Comments:
2. Question :
Student Answer:
(TCO 7) The first step in implementing target pricing and target
costing is
choosing a target price.
determining a target cost.
developing a product that satisfies needs of potential
customers.
Instructor
Explanation:
Points Received:
performing value engineering.
Chapter 12, Page 435
3 of 3
Comments:
3. Question :
Student Answer:
(TCO 7) The markup percentage is usually higher if the cost
base used is
the full cost of the product.
the variable cost of the product.
variable manufacturing costs.
total manufacturing costs.
Instructor
Explanation:
Points Received:
Chapter 12, Page 441
3 of 3
Comments:
4. Question :
Student Answer:
(TCO 7) An understanding of life-cycle costs can lead to
additional costs during the manufacturing cycle.
less need for evaluation of the competition.
cost-effective product designs that are easier to service.
Instructor
Explanation:
Points Received:
mutually beneficial relationships between buyers and sellers.
Chapter 12, Page 443
3 of 3
Comments:
(TCO 7) Pritchard Company manufactures a product that has a
variable cost of $30 per unit. Fixed costs total $1,500,000,
allocated on the basis of the number of units produced. Selling
price is computed by adding a 20% markup to full cost. How
much should the selling price be per unit for 300,000 units?
5. Question :
Student Answer:
$49.
$43.75.
$42.
Instructor
Explanation:
$35.
$30 x 300,000 units - $9,000,000 + $1,500,000= $10,500,000
$10,500,000 x 1.20 = $12,600,000 / 300,000 units = $42
Points Received:
3 of 3
Comments:
6. Question :
Student Answer:
(TCO 8) A product may be passed from one subunit to another
subunit in the same organization. The product is known as
an interdepartmental product.
an intermediate product.
a subunit product.
Instructor
Explanation:
Points Received:
Comments:
a transfer product.
Chapter 22, Page 774
3 of 3
7. Question :
Student Answer:
(TCO 8) Transfer prices should be judged by whether they
promote
goal congruence.
the balanced scorecard method.
a high level of subunit autonomy in decision making.
Instructor
Explanation:
Points Received:
Both 1 and 2 are correct.
Chapter 22, Pages 778-784
3 of 3
Comments:
8. Question :
Student Answer:
(TCO 8) When an industry has excess capacity, market prices
may drop well below their historical average. If this drop is
temporary, it is called
distress prices.
dropped prices.
low-average prices.
Instructor
Explanation:
Points Received:
substitute prices.
Chapter 22, Page 778
3 of 3
Comments:
9. Question :
Student Answer:
(TCO 8) An advantage of using budgeted costs for transfer
pricing among divisions is that
it promotes subunit autonomy.
the divisions know the transfer price in advance.
it usually provides a basis for optimal decision making.
Instructor
Explanation:
Points Received:
overall corporate profitability is usually higher.
Chapter 22, Page 782
3 of 3
Comments:
10. Question :
Student Answer:
(TCO 8) The seller of Product A has no idle capacity and can sell
all it can produce at $20 per unit. Outlay cost is $4. What is
the opportunity cost, assuming the seller sells internally?
$4
$16
$20
Instructor
Explanation:
Points Received:
Comments:
$24
$20 - $4 = $16
3 of 3