A.

Gypsum Park Recreation is exploring a competitive bidding situation. The firm, which currently has no excess capacity, estimates the following costs for a project to be performed for the Talent School District: Direct material $400,000 Direct labor 140,008 Allocated variable overhead 37,000 Allocated fixed cost 44,600 Which of the following cost gures would be used in determining a minimum price if Gypsum Park decides to bid on the Talent project? \fConsider the following statements about activitybased costing and its use in pricing: l. A company that uses target costing generally would have little need for activityrbased costing. ll. Companies that use costplus pricing methods would have little need for activity-based costing. Ill. The use of activitybased costing will often lead to better pricing decisions by managers. Which of the above statements is (are) true? M ultiple Choice 0 O O O O | and III. I" only. | only. I, II, and III. II only. Company A uses a pricing approach where the initial price for a product is set high and then lowered, and Company B uses an approach where initial prices are set low in an effort to gain market share. What terms best describe these practices? - Company A Company B m Predatory _ Predatory _ Predatory Ia Predatory Under which ofthe following condition(s) are prices said to be elastic? - Price Change Change in Sales Volume _ _ seeeeee eeeeeee Decrease sizable increase a Decrease sizable decrease E Either sizable increase or decrease Either sizable increase or decrease The curve that shows the relationship between the sales price and quantity sold is called the: M ultiple Choice marginal revenue curve. demand curve. average COSt curve. total revenue curve. OOOOO profit curve