• 2022-06-07
    In a long-run, it is worthwhile to sell a product only if the selling price exceeds________.
    A: the total of all the direct costs of the product
    B: the total manufacturing costs of the product
    C: the total of the fixed costs of the value chain
    D: full cost of the product and a markup that provides an adequate return on capital
  • D

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    • 0

      When customers buy a product, they are interested in more than just the price; they are interested in the total ________ of obtaining, using and disposing a product. A: prices B: costs C: services D: troubles

    • 1

      Division Big does have excess capacity to produce Product XX. The division can sell Product XX for $10 per unit outside the company. Variable costs are $6 per unit. Division Small wants to purchase Product XX from Division Big to use in Product ZZ. The selling price of Product ZZ is $25 per unit and variable costs to finish the product after the transfer are $12 per unit. An outside supplier will sell Product XX for $12. What is the minimum transfer price for Division Big?

    • 2

      ABC Co sells product B. The fixed costs of ABC Co are $125,000. The variable cost of product B is $25. ABC Co expects to produce 12,500 units of product B.If the selling price were increased to $45, how many units of Product B would ABC Co need to sell in order to make a $50,000 profit? A: 12,500 units B: 8,750 units C: 6,250 units D: 2,500 units

    • 3

      Which of the following costs would be considered a period rather than a product cost in a manufacturing company? A: Manufacturing equipment depreciation. B: Property taxes on corporate headquarters. C: Direct materials costs. D: Electrical costs to light the production facility.

    • 4

      Costs that change with the level of production are referred to as ________. A: fixed costs B: variable costs C: target costs D: total costs