a difference in cost-plus pricing and target costing is that target costing starts with the price customers are willing to pay whereas cost-plus pricing starts with the cost.   computes the desired markup while cost-plus pricing computes the maximum cost the company is willing to incur.   is generally determined after introducing a product and cost-plus pricing is determined before introducing a product.   is a simple approach while cost-plus pricing is relatively complex.

Q: variable

A: Performance evaluation based on income could be best achieved by using variable costing method in…

Q: Variable selling expenses are a. Product costs under variable costing but period costs under…

A: The correct answer is Option (a).

Q: nother cost-based approach to pricing is called time and material pricing. Under this approach, two…

A: Answer: Some companies--partiicularly in service industries-- use a variiation of cost and pricing…

Q: Which of the following is not a potential advantage of variable costing relative to absorption…

A: Variable costing is a method in which only variable cost is considered in product cost. Absorption…

Q: in intended application between sales life-cycle analysis and life-cycle costing

A: The strategic pricing depends on the product price which it supported the worth it charges to the…

Q: Gross margin is to absorption costing as which of the following is too variable costing?   A.…

A: Variable costing uses Contribution Margin Income Statement by showing Sales – VARIABLE expenses =…

Q: Which of the statement is not a true reflection of Target cost gap ?   The target cost gap =…

A: target costing is the way in which deriving of a target cost is done to set the production manager…

Q: The objective of management, under absorption costing, is that each product recovers its full cost…

A: Absorption costing is the method used by the managers to determine the cost connected with the…

Q: Which one of the following is not correct about variable costing systems? Select one: O a. Focuses…

A: Variable costing: Under this method refers to the cost technique under which only variable costs are…

Q: In target​ costing, prices determine costs rather than vice​ versa." Explain.       Question content…

A: Target costing involves the calculation of an allowable product cost to earn a predetermined amount…

Q: When standard costs are used in applying the cost-plus approach to product pricing, the standards…

A: False No, the standards should not be based upon normal levels of performance.

Q: When pricing a product or service, managers must consider which of the following? Only period costs…

A: Pricing a product is considered as one of the marketing strategy.

Q: What factor, related to manufacturing costs, causes the difference in net earnings computed using…

A: Answer: Correct answer is option ( d) d. Absorption costing "inventories" all direct costs, but…

Q: Managers must decide whether a product should be sold at splitoff or processed further. The sales…

A: Joint cost is the cost of assembling, that is incurred by an organization on a joint creation…

Q: Which of the following is a true statement? O The mark-up is designed to cover all non-product…

A: Answer: only a and c above The markup method is commonly used in pricing restaurant food menus and…

Q: When comparing absorption costing with variable costing, which of the following statements is not…

A: Absorption costing is that method of costing, in which all total costs (fixed and variable) are…

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

Q: Cost Plus Pricing   This is the most common cost-based approach to pricing a product, in which a…

A: Cost Added Pricing seems to be the most typical cost-based method of setting prices for the goods,…

Q: Product costs under variable costing are typically: Group of answer choices A. higher than under…

A:

Q: Target costing A target cost is 'a product cost estimate derived by subtracting the desired profit…

A: Target costing: A costing system that emphasizes on the minimization of existing and future design…

Q: Product costs under variable costing are typically:   Question 1 options:   lower than under…

A: As per the variable costing method, only variable cost is considered as the product cost while in…

Q: Relevant of differential cost analysis takes all variable and fixed costs into account to analyze…

A: Differential cost analysis is the difference in cost for every alternative which helps in making the…

Q: Which of the following choices correctly denotes the data needed to allocate joint costs under the…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Is a variable costing income statement applicable to service operations? If so, provide a…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In a product mix decision, which is the most important factor to consider in order to try to…

A: Product mix decision includes the decision related to the adding or eliminating of the product…

Q: Marginal costing is usually deployed when decisions about volume are being made. Discuss the…

A: Monetary Accounting has appeared with the advancement of huge scope business   as business entities.…

Q: costs assigned to units in inventory are typically lower under absorption costing than under vanable…

A: As per the guidelines, only one question is allowed to be solved so I am answering the first…

Q: Which of the following option is correct regarding difference in activity-based costing when…

A: Simple costing and activity based costing does not yield in similar since the cost drivers will…

Q: Which among the following is not true about traditional costing system? a. This method allocates…

A: Traditional costing is allocating the factory overhead to products based on the volume of the…

Q: Which of the following statements is not true regarding the use of variable and absorption costing…

A: Answer:   Option d.

Q: choose a company which produces more than one product. Take at least two of these products and…

A: The answer is stated below:

Q: Which of the following statements is true?   a. When production is greater than sales, operating…

A: The question is based on the concept of Cost Accounting.

Q: The objective of management, under absorption costing, is that each product recovers its full cost…

A: The management is interested in that product which is giving profit in return on investment.it means…

Q: On the variable costing income statement, the figure representing the difference between…

A: Variable costing income statement: Particulars Amount Sales  xx Less: Cost of goods sold…

Q: T, F. In a make or buy short-run decision situation, the critical element to consider is whether the…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: This best accounts for the difference in profit between the absorption and variable costing *…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Which one of the following is correct about variable costing systems? Select one: a. Normally result…

A: Under the variable costing system, the product cost includes direct material, direct labor, direct…

Q: get costing is reversal of: a. Marginal cost b. Skimming pricing c. Penetrating pricing d. Cost plus…

A: Solution: Target costing is reversal of Cost plus model. This is because under target costing cost…

Q: Explain the difference between variable costing and absorption costing income statements. Provide a…

A: Difference Between Variable Costing and absorption costing income statements. Under Variable…

Q: Which of the following is a correct statement? OA the fixed manufacturing cost is based on a per…

A: Fixed manufacturing cost is a fixed overhead cost. Under Variable Costing, fixed overhead cost is…

Q: T, F. In a make or buy short-run decision situation, the critical element to consider is whether the…

A: Variable cost is that cost that varies with the number of units produced. It means that increase in…

Q: Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs…

A: Cost based pricing is the method to set selling price based on the cost. To get selling price,…

Q: In order to draw a basic break-even chart, which of the following information would you not require?…

A: The break even sales are the sales where business earns no profit no loss during the period.  The…

Q: A cost that would be included in product costs under both absorption costing and variable costing…

A: The key difference between variable and absorption costing approaches is that while absorption…

Q: Briefly explain the potential negative consequences in pricing decisions from using a traditional,…

A:

Q: Which of the following statements is not false of costing​ systems?   A. ​Activity-based costing…

A: Introduction: Traditional costing is the more simplest method which typically delivers less accuracy…

Q: same industry for same product b.the same firm for same product c.the several firm for same…

A: b. Multiple costing is a technique of using two or more costing methods for ascertainment of cost by…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.