Much the s below by entering the appropriate code letter in the s c cremental analysis Opportunity cost Sunk cost 18. A cost that cannot be changed by any present or future decision 19 The process of identifying the financial data that change under alternative s 20 The potential benefit that may be lost from following an alternative courses PARE MULTIPLE CHOICE QUESTIONS (QUALITATIVE QUESTIONS Please choose the correct one. (202 pointss 40 points 1. 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 ca company can effectively differentiate its product from others d. a product is not easily distinguished from competing products 2. Companies that sell products whose prices are set by market forces are called a. price takers. b. price leaders. c. price givers d. price setters 3. 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 4. 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. 5. A company that is a price taker would most likely use which of the following methods? a. Time-and-material pricing b. Target costing c. Cost plus pricing, contribution approach d. Cost plus pricing, absorption approach 6. In cost-plus pricing, the markup consists of a. manufacturing costs. b. desired ROI. c. selling and administrative costs. d. total cost and desired ROI. 2