UPDATE The options are as follows: activity-based costing, appraisal or inspection costs, batch level activities, external failure costs,facility-level activities, just in time system, none of these are correct, prevention costs, unit-level activities, value chain, and value-added activity
Match each definition with its related term by selecting the appropriate term in the dropdown provided. (Select "None of these are correct" if there is no term for the "Definition".) Term Definition A. Activities that are performed to benefit the organization as a whole. B. Activities that are independent of the of the number of units, but are performed for a group all at once. c. Activities that vary in direct proportion to the number of units produced or customers served. D. An activity, which if eliminated, would not change the perceived worth of the product or service. E. An activity, which if eliminated, would change the perceived worth of the product or service. F. A demand-pull system. G. A demand-push system. H. A report that provides details about internal failure costs. 1. Costs incurred to keep quality problems from happening. J. Costs incurred to identify defective products before they get to customers. K. Costs that result from the defects caught during the inspection process. L. Warranty costs, recalls, and product replacement costs. M. A linked set of activities required to design, develop, produce, market, deliver the product to customers, and aftermarket service. N. A process that involves analyzing the feasibility of a product to meet a projected life cycle cost. 0. A method that identifies the major activities that place demands on a company's resources and then assigns indirect costs to the products/services that create those demands. Majesty Company uses target costing to ensure that its products are profitable. Assume Majesty is planning to introduce a new product with the following estimates: Estimated market price $ Annual demand Life cycle Target profit 2,800 86,000 units 3 years 28% return on sales Required: 1. Compute the target cost of this product. 2. Compute the target cost if Majesty wants a 39 percent return on sales. 3. Compute the target cost if Majesty wants a 12 percent return on sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the target cost of this product. Target Cost Classify each of the following as Prevention (P), Appraisal or Inspection (AI), Internal Failure (IF), or External Failure (EF) costs. 1. Cost of scrapped product. 2. Damage to company's reputation. 3. Cost of rework. 4. Quality training. 5. Costs of the quality control department. 6. Cost of downtime created by quality problems. 7. Simplifying the product design to reduce defects. 8. Product replacement costs
