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.

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Cost Management and Pricing Decisions MCQs | Page 3 of 15

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Q21.
The practice of seller to charge higher price for same market offering is classified as

a.

peak-load pricing

b.

elastic pricing

c.

elastic demand

d.

inelastic demand

Discuss
Answer: (a).peak-load pricing
Q22.
The companies that perform in less competitive markets and their market offerings significantly differ are classified as

a.

independent revenue approach

b.

market based approach

c.

cost based approach

d.

dependent revenue approach

Discuss
Answer: (c).cost based approach
Q23.
The process which leads to disassembling and analysis of competitors, operating activities to become acquainted with competitors' technologies is called

a.

outsource engineering

b.

reverse engineering

c.

target engineering

d.

off shore engineering

Discuss
Answer: (b).reverse engineering
Q24.
The technique, which accumulates and tracks revenues of business function in value chain attributed to each market offering from R&D; to final customer support is called

a.

product life cycle

b.

life cycle budgeting

c.

life cycle costing

d.

target costing

Discuss
Answer: (b).life cycle budgeting
Q25.
The major influential factors on supply and demand include

a.

customers

b.

costs

c.

competitors

d.

all of above

Discuss
Answer: (a).customers
Q26.
The product costing technique in which markup component is added into cost base, to set a target price is known as

a.

market based approach

b.

cost incurrence pricing

c.

cost plus pricing

d.

locked-in cost pricing

Discuss
Answer: (c).cost plus pricing
Q27.
If the invested capital is $150000 and target rate of return on investment is 16%, then the targeted annual operating income would be

a.

$27,000

b.

$26,000

c.

$24,000

d.

$25,000

Discuss
Answer: (c).$24,000
Q28.
In cost-plus pricing, the 'plus' refers to a component named as

a.

off shore cost

b.

markup

c.

sunk cost

d.

outsource cost

Discuss
Answer: (b).markup
Q29.
The span time from initial research and development of product till support and customer service, if not offered for that particular product will be called

a.

product life cycle

b.

life cycle budgeting

c.

life cycle costing

d.

target costing

Discuss
Answer: (a).product life cycle
Q30.
When the fixed cost is divided into contribution margin per unit, it gives

a.

fixed output

b.

variable output

c.

breakeven number of units

d.

total number of units

Discuss
Answer: (c).breakeven number of units
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