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81 all of the following should be considered in a make or buy decision except a cost 4294989

 

 

81. All of the following should be considered in a make or buy decision except 
A. cost savings
B. quality issues with the supplier
C. future growth in the plant and other production opportunities
D. whether the supplier will make a profit that would no longer belong to the business

 

82. Which of the following reasons would cause a company to reject an offer to accept business at a special price? 
A. The additional sale will not conflict with regular sales.
B. The additional sales will increase differential income.
C. The additional sales will not increase fixed expenses.
D. The additional sales will increase fixed expenses.

 

83. A practical approach which is frequently used by managers when setting normal long-run prices is the: 
A. cost-plus approach
B. economic theory approach
C. price graph approach
D. price skimming

 

84. Which of the following is NOT a cost concept commonly used in applying the cost-plus approach to product pricing? 
A. Total cost concept
B. Product cost concept
C. Variable cost concept
D. Fixed cost concept

 

85. When using the total cost concept of applying the cost-plus approach to product pricing, what is included in the markup? 
A. Total selling and administrative expenses plus desired profit
B. Total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit
C. Total costs plus desired profit
D. Desired profit

 

86. When using the product cost concept of applying the cost-plus approach to product pricing, what is included in the markup? 
A. Desired profit
B. Total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit
C. Total costs plus desired profit
D. Total selling and administrative expenses plus desired profit

 

87. When using the variable cost concept of applying the cost-plus approach to product pricing, what is included in the markup? 
A. Total costs plus desired profit
B. Desired profit
C. Total selling and administrative expenses plus desired profit
D. Total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit

 

88. What cost concept used in applying the cost-plus approach to product pricing covers selling expenses, administrative expenses, and desired profit in the “markup”? 
A. Total cost concept
B. Product cost concept
C. Variable cost concept
D. Sunk cost concept

 

89. What cost concept used in applying the cost-plus approach to product pricing includes only desired profit in the “markup”? 
A. Product cost concept
B. Variable cost concept
C. Sunk cost concept
D. Total cost concept

 

90. What cost concept used in applying the cost-plus approach to product pricing includes only total manufacturing costs in the “cost” amount to which the markup is added? 
A. Variable cost concept
B. Total cost concept
C. Product cost concept
D. Opportunity cost concept

 

 

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