In which of the following situations would a company not set the prices of its products?

a.When the product is not easily differentiated from competing products

b.When the product is specially made for a customer

c.When there are few or no other producers capable of making a similar product

d.When the product can be effectively differentiated from others

Prices are set by the competitive market when

a.the product is specially made for a customer.

b.there are no other producers capable of manufacturing a similar item.

c.a company can effectively differentiate its product from others.

d.a product is not easily distinguished from competing products.

5.All of the following are correct statements about the target price except it

a.is the price the company believes would place it in the optimal position for its target audience.

b.is used to determine a product's target cost.

c.is determined after the company has identified its market and does market research.

d.is determined after the company sets its desired profit amount.

The calculation to determine target cost is

a.variable manufacturing costs + fixed manufacturing costs.

b.sales price - (variable manufacturing costs + fixed manufacturing costs).

c.variable manufacturing costs + selling and administrative variable costs.

d.sales price - desired profit.

9.Target cost is comprised of

a.variable and fixed manufacturing costs only.

b.variable manufacturing and selling and administrative costs only.

c.total manufacturing and selling and administrative costs.

d.fixed manufacturing and selling and administrative costs only.