Problem 3-True False A usefiul device for solving production problems involving multiple products and li gross proit per unit of product. limited resources is 2. One of the behavioral problems with relevant cost analysis is the overemphasis on shont te on short-term goals. 3. Use of namely objectivity the market-price method (when such prices exist) satisfies a key objective of transfer pricing. in sub-optimal decisions fronm 4. The biggest problem with cost-based transfer prices is they may result the standpoint of the organization as a whole. intemalis, Market-based transfer prices generally can be detcrmined for all goods and services transferred 6. The greatest advantage of using a negotiated transfer price is it is the most efficient method. 7 Many firms choose to achieve target cost through redesign of the product or service because they recognize that design decisions are critical success factors. ns are finding it is difficult to compete successfully on cost leadership or differentiation 8. Many firm alone, and they must, in fact, compete on both cost and price. 9. Throughput margin is defined as sales less direct material costs 10.Plnat management salaries is a facility-level activity 11. In an organization that makes furniture, storing finished goods is a high value-added activity. 12. Number of units would likely be tan appropriate cost driver of electric power used by machines. 13. In an activity-based costing system, overhead costs are divided into separate cost objects. 14. Committed or "sunk" costs are generally those that have been incurred in the past. 15. Operating at or near full capacity will require a firm considering a special sales order to potentially recognize the use of operating leverage 7. Many firms choose to achieve target cost through redesign of the prouucl ur scvi recognize that design decisions are critical success factors. - 8. Many firms are finding it is difficult to compete successfully on cost leadership or d alone, and they must, in fact, compete on both cost and price 9. Throughput margin is defined as sales less direct material costs. 10.Plnat management salaries is a facility-level activity. 11. In an organization that makes furniture, storing finished goods is a high value- would likely be tan appropriate cost driver of electric power 12. Number of units 13. In an activity-based costing system, overhead costs are divided into separate 14. Committed or "sunk" costs are generally those that have been incurred in th 15. Operating at or near full capacity will require a firm considering a special gnize the use of operating leverage