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Cost Management and Pricing Decisions Online Exam Quiz

Important questions about Cost Management and Pricing Decisions. Cost Management and Pricing Decisions MCQ questions with answers. Cost Management and Pricing Decisions exam questions and answers for students and interviews.

The pricing method used by services companies, such as home repair services, architectural firms and automobile repair services is known as

Options

A : a. product life cycle method

B : b. life cycle budgeting method

C : c. life cycle costing method

D : d. time and material method

The practice by seller, about offering same product at different prices, to the different customers is known as

Options

A : a. price incurrence

B : b. price discrimination

C : c. price targeting

D : d. price engineering

The total cost incur by customer to use, acquire, maintain and dispose service or product is classified as

Options

A : a. budgeted life cycle

B : b. targeted life cycle

C : c. customer life cycle

D : d. operating life cycle

If cost is eliminated, then reducing the perceived usefulness that customers can obtain by using the market offering will come under

Options

A : a. designed-in costs

B : b. locked-in costs

C : c. value added cost

D : d. non-value added cost

If total production is 25000 units and target annual operating income is $300000, then target operating income per unit would be

Options

A : a. $15

B : b. $12

C : c. $16

D : d. $18

The costs that are planned in future and has not been incurred are known as

Options

A : a. designed-in costs

B : b. locked-in costs

C : c. value added cost

D : d. both a and b

The target annual operating income is divided with invested capital to calculate

Options

A : a. target rate of return on investment

B : b. operating income per unit

C : c. operating cost per unit

D : d. cost of goods sold

A technique, which accumulates and tracks the costs of business function in value chain attributed to each market, offering from R&D; to final customer support, is called

Options

A : a. product life cycle

B : b. life cycle budgeting

C : c. life cycle costing

D : d. target costing

If the cost base is $350 and the markup component is 11% then prospective selling price will be

Options

A : a. 388.5

B : b. 350

C : c. 362

D : d. 368.5

An estimated cost per unit in long run, which enables the company to achieve it's per unit target, operating income is classified as

Options

A : a. target operating income per unit

B : b. target cost per unit

C : c. total current full cost

D : d. total cost per unit

The concept, which states that resources are used to meet particular goals is

Options

A : a. cost incurrence

B : b. valued incurrence

C : c. locked incurrence

D : d. non valued incurrence

The target price is subtracted from per unit target operating income to calculate

Options

A : a. total current full cost

B : b. total cost per unit

C : c. target operating income per unit

D : d. target cost per unit

The selection of target price, understanding customer requirements, improving product designs and use of cross functional teams are considered as aspects of

Options

A : a. target pricing

B : b. target costing

C : c. value engineering

D : d. all of above

The kind of cost which on elimination, would not reduce the perceived usefulness that customers can obtain by using the market offering is known as

Options

A : a. designed-in costs

B : b. locked-in costs

C : c. value added cost

D : d. non-value added cost

The companies that perform in competitive markets using the pricing approach are known as

Options

A : a. independent revenue approach

B : b. market based approach

C : c. dependent revenue approach

D : d. cost based approach

The systematic evaluation of value chain, to reduce costs and high quality, to achieve satisfied customers is known as

Options

A : a. reverse engineering

B : b. value engineering

C : c. target engineering

D : d. operation engineering

The major approaches to make decisions about pricing include

Options

A : a. market based

B : b. sunk cost

C : c. cost based

D : d. both a and c

The practice of seller to charge higher price for same market offering is classified as

Options

A : a. peak-load pricing

B : b. elastic pricing

C : c. elastic demand

D : d. inelastic demand

The companies that perform in less competitive markets and their market offerings significantly differ are classified as

Options

A : a. independent revenue approach

B : b. market based approach

C : c. cost based approach

D : d. dependent revenue approach

The process which leads to disassembling and analysis of competitors, operating activities to become acquainted with competitors' technologies is called

Options

A : a. outsource engineering

B : b. reverse engineering

C : c. target engineering

D : d. off shore engineering

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