Cost Management and Pricing Decisions MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Cost Management and Pricing Decisions, a fundamental topic in the field of Cost Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Cost Management and Pricing Decisions MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Cost Management and Pricing Decisions mcq questions that explore various aspects of Cost Management and Pricing Decisions problems. Each MCQ is crafted to challenge your understanding of Cost Management and Pricing Decisions principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Cost Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Cost Management and Pricing Decisions MCQs are your pathway to success in mastering this essential Cost Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Cost Management and Pricing Decisions. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

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Cost Management and Pricing Decisions MCQs | Page 1 of 15

Q1.
The pricing method used by services companies, such as home repair services, architectural firms and automobile repair services is known as
Discuss
Answer: (d).time and material method
Q2.
The practice by seller, about offering same product at different prices, to the different customers is known as
Discuss
Answer: (b).price discrimination
Q3.
The total cost incur by customer to use, acquire, maintain and dispose service or product is classified as
Discuss
Answer: (c).customer life cycle
Q4.
If cost is eliminated, then reducing the perceived usefulness that customers can obtain by using the market offering will come under
Discuss
Answer: (c).value added cost
Q5.
If total production is 25000 units and target annual operating income is $300000, then target operating income per unit would be
Discuss
Answer: (b).$12
Q6.
The costs that are planned in future and has not been incurred are known as
Discuss
Answer: (a).designed-in costs
Q7.
The target annual operating income is divided with invested capital to calculate
Discuss
Answer: (a).target rate of return on investment
Q8.
A technique, which accumulates and tracks the costs of business function in value chain attributed to each market, offering from R&D; to final customer support, is called
Discuss
Answer: (c).life cycle costing
Q9.
If the cost base is $350 and the markup component is 11% then prospective selling price will be
Discuss
Answer: (a).388.5
Q10.
An estimated price, which is expected to be paid by customers for particular market offering is classified as
Discuss
Answer: (a).target price
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