Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 13, Problem 13.12Q
Give two examples in which the difference in the costs of two products or services is much smaller than the difference in their prices.
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Chapter 13 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 13 - What are the three major influences on pricing...Ch. 13 - Relevant costs for pricing decisions are full...Ch. 13 - Describe four purposes of cost allocation.Ch. 13 - How is activity-based costing useful for pricing...Ch. 13 - Describe two alternative approaches to long-run...Ch. 13 - What is a target cost per unit?Ch. 13 - Describe value engineering and its role in target...Ch. 13 - Give two examples of a value-added cost and two...Ch. 13 - It is not important for a company to distinguish...Ch. 13 - Prob. 13.10Q
Ch. 13 - Describe three alternative cost-plus pricing...Ch. 13 - Give two examples in which the difference in the...Ch. 13 - What is life-cycle budgeting?Ch. 13 - What are three benefits of using a product...Ch. 13 - Prob. 13.15QCh. 13 - Which of the following statements regarding price...Ch. 13 - Value-added, non-value-added costs. The Magill...Ch. 13 - Target operating income, value-added costs,...Ch. 13 - Target prices, target costs, activity-based...Ch. 13 - Target costs, effect of product-design changes on...Ch. 13 - Target costs, effect of process-design changes on...Ch. 13 - Cost-plus target return on investment pricing....Ch. 13 - Cost-plus, target pricing, working backward....Ch. 13 - Life-cycle budgeting and costing. Arnold...Ch. 13 - Considerations other than cost in pricing...Ch. 13 - Cost-plus, target pricing, working backward. The...Ch. 13 - Value engineering, target pricing, and target...Ch. 13 - Target service costs, value engineering,...Ch. 13 - Cost-plus, target return on investment pricing....Ch. 13 - Cost-plus, time and materials, ethics. C S...Ch. 13 - Cost-plus and market-based pricing. Georgia Temps,...Ch. 13 - Cost-plus and market-based pricing. (CMA, adapted)...Ch. 13 - Life-cycle costing. Maximum Metal Recycling and...Ch. 13 - Airline pricing, considerations other than cost in...Ch. 13 - Prob. 13.35PCh. 13 - Ethics and pricing. Instyle Interior Designs has...Ch. 13 - Value engineering, target pricing, and locked-in...
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- Give the general formula for a mixed cost. What does each term represent? Provide an example of a product or service with a mixed cost.arrow_forwardwhat are the differences between the FIFO, LIFO, and the average cost?arrow_forwardWhat is a fixed cost? A variable cost? A mixed cost? Give an example of eacharrow_forward
- What is the difference between a direct cost and an opportunity cost. Can you show the difference of these costs by sharing one (1) out-of-pocket cost and one (1) opportunity cost?arrow_forwardIn applying the high-low method of cost estimation to mixed costs, how is the total fixed cost estimated? How does the sales mix affect the calculation of the break-even point?arrow_forwardExplain the differences among fixed costs, variable costs, and mixed costs.arrow_forward
- "A variable cost is a cost that varies per unit of product, Q- 1: whereas a fixed cost is constant per unit of product." Do you agree? Explain.arrow_forwardWhy are the terms direct costs and indirect costs independent of the terms fixed costs and variable costs? Define "sunk" costs and "opportunity" costs. Give examples for all.arrow_forwardWhy might the number of products in a joint - cost situation differ from the number of outputs? Give an example.arrow_forward
- Which of the following is contribution margin? Group of answer choices Excess of sales revenue over total variable costs. Excess of sales revenue over costs of goods sold. Excess of sales revenue over variable costs of goods sold. All of the answer choices are correct.arrow_forwardDefine cost behavior. Define and discuss how variable cost, fixed cost and mixed cost is different. Provide an example of each.arrow_forwardDescribe how total variable costs and unit variable costs behave with changes in the level of activity. Describe how total fixed costs and unit fixed costs behave with changes in the level of activity. In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost estimated? How does the sales mix affect the calculation of the break-even point? Cite and give credit to the author that you are citing.arrow_forward
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