Question
which statement is CORRECT? A. In markets with severe competition, the key factor affecting price is the customer's willingness to pay for the product. B.
which statement is CORRECT?
A. In markets with severe competition, the key factor affecting price is the customer's willingness to pay for the product.
B. Value engineering seeks to reduce value-added costs so that companies can meet the target cost.
C. Company ABC sells it product at $100/unit. The required profit per unit is $20. The current cost is $88/unit. Company ABC needs to conduct value engineering to decrease the current cost to its target cost.
D. The best opportunity to manage costs is during the cost incurrence.
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Gloria's Decorating produces and sells a mantel clock for$110perunit.In2015,42,000clockswere produced and36,000were sold.Other information for the year includes:
Variable manufacturingcosts$4.50per unit
Salescommissions$12.50perpart
Fixedmanufacturingcosts$65.00perunit
Administrativeexpenses,allfixed$39.50perunit
Based on CH9,whichstatementis CORRECT?
A.The operating income under Absorption costing is lower than the operating income under Variable costing
B.Managers using Variable costing will manipulate earningsbyproducing more units than sales
C.The difference of Operating income between Absorption costing and Variable costing is $390,000
D.
The "Administrative expenses (fixed)" is used to calculate the Gross margin
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