1) Time-and-material pricing is widely used in service industries. True O False TRUE

2) As more companies "globalize" their operations, fewer transfers are happening between divisions that are in different countries. True O False

3) Under the variable cost-plus pricing approach, the cost base consists of all of the variable costs associated with a product except variable selling and administrative costs. True False

4) Differences in tax rates between countries can complicate the determination of the appropriate transfer price. O True O False

5) A company must price its product to cover its costs and earn a reasonable profit in O all cases. the short run. its early years. O the long run.

6) Which of the following statements about the target price is incorrect? It is determined after the company has identified its market and does market research. It is the price the company believes would place it in the optimal position for its target audience. O It is used to determine a product's target cost. It is determined after the company sets its desired profit amount. 7) Which of the following has the most impact on setting a market-based price? O the efficiency of the company's supply chain O changes in quality of the product or service demand for the service or product O prices charged by the company's suppliers

8) In cost-plus pricing, the target selling price is calculated as fixed cost per unit + desired ROl per unit. O variable cost per unit + desired ROl per unit. O total unit cost + desired ROl per unit. O variable cost per unit + fixed manufacturing cost per unit + desired ROl per unit.

9) Crane Company produces high definition television sets and uses total cost-plus pricing. The following information is available for this product: Fixed cost per unit Variable cost per unit Total cost per unit Desired ROl per unit $100 200 300 123 Crane Company's markup percentage would be 67%. O 41%. 23%. 123%

. 10) Carla Vista Company produces high definition television sets and uses total cost-plus pricing. The following information is available for this product: Fixed cost per unit Variable cost per unit Total cost per unit Desired ROl per unit $100 370 470 145 k The target selling price for this television is $470. O $515. O $615. O $245.