A. No
B. Yes
Answer: B
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NEW QUESTION: 1
A. No
B. Yes
Answer: B
NEW QUESTION: 2
CORRECT TEXT
Answer:
Explanation:
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NEW QUESTION: 3
Several surveys point out that most managers use full product costs, including unit fixed costs and unit variable costs, in developing cost-based pricing. Which one of the following is least associated with cost-based pricing?
A. Price stability.
B. Price justification.
C. Target pricing.
D. Fixed-cost recovery.
Answer: C
Explanation:
A target price is the expected market price of a product, given the company's knowledge of its customers and competitors. Hence, under target pricing, the sales price is known before the product is developed. Subtracting the unit target profit margin determines the long-term unit target cost. If cost-cutting measures do not permit the product to be made at or below the target cost, it will be abandoned.