Manufacturing overhead is calculated as: A percent of labor A percent of material costs A percent of total cost A percent of price A component of SGA Bookmark question for later How do total landed costs differ from total cost of ownership? Total costs of ownership consider the net present value of money, whereas total landed costs do not. Total landed costs do not consider acquisition cost. Total landed costs do not consider transportation cost. Total costs only consider the entire life cycle of a product, and total landed costs consider only the manufacture of the product. Bookmark question for later Which of the following is a critical step in using cost modeling to estimate a product or component cost? Hardball your supplier to give you the information Map the process used to produce/procure the component Utilize net present value Understand strategic positioning Bookmark question for later Cost modeling: Is an individual-oriented process Can be used by any functional areas to understand the costs of a product or process Is for senior management use only Is a functional-oriented process Bookmark question for later During execution of the target costing decision, the primary objective is to: Alter product design Reduce costs Increase revenue Understand individual cost elements Negotiate with suppliers