Question 3 1 pts Under cost-plus pricing, the markup percentage is computed by dividing desired ROI per unit by variable cost per unit. True False Once a company has determined the target price, it can determine its target cost by setting a desired profit. True False Question 4 1 pts The labor charge includes the direct labor cost of employees, selling, administrative and similar overhead costs; an an allowance for a desired profit per hour. True False Question 5 1 pts The charges for any particular job are the sum of the labor, charge, the materials charge, and the material loading charge. True False Question 6 1 pts An appropriate transfer price should assist the company in making proper purchasing decisions. True False Question 7 1 pts An advantage of the cost-based transfer price approach is that it can increase a division manager's control over the division's performance. True False Question 8 1 pts The market-based transfer price approach provides a fairer allocation of the company's contribution to each division than the cost-based approved. True False Question 9 1 pts In order to maximize income, and minimize income tax, companies can adjust the transfer prices they use on transfers between divisions located in different True False Question 10 1 pts Absorption cost pricing is more consistent with cost-volume-profit analysis used to measure the profit implications of changes in price and volume. True False