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
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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
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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
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Major influential factors on supply and demand include
A. customers
B. costs
C. competitors
D. all of above
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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
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If invested capital is $150000 and target rate of return on investment is 16%, then target annual operating income would be
A. $27,000
B. $26,000
C. $24,000
D. $25,000
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In cost-plus pricing, 'plus' refers to a component named as
A. off shore cost
B. markup
C. sunk cost
D. outsource cost
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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
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Kind of costs that has been occurred in past are also known as
A. unrecorded costs
B. recorded costs
C. sunk costs
D. bunked costs
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Factor, which are largely considered in making or buying decisions is
A. quality of suppliers
B. dependability of suppliers
C. production irrelevancy
D. both a and b
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third step in decision making process is
A. linear predictions
B. dependent predictions
C. making predictions
D. independent predictions
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As compared to irrelevant cost, occurrence of relevant costs must
A. have high correlation
B. be in future
C. be in past
D. be zero correlated
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Decisions made by team of individuals or single person, whether to outsource products or in-source are classified as
A. demand or supply decisions
B. make or buy decisions
C. relevant or irrelevant decision
D. idle or busy decisions
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Difference that exists between total revenues, can be earned from two different alternatives is termed as
A. independent revenue
B. incremental revenue
C. differential revenue
D. dependent revenue
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An example of quantitative factor is
A. employee behavior at workplace
B. employee satisfaction
C. employee morale
D. cost of materials
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relevant costs are classified in relevance concepts as
A. expected future costs
B. serial costs
C. parallel costs
D. abnormal costs
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Financial factors measured in numerical terms, having some monetary value are considered as
A. qualitative factors
B. quantitative factors
C. expected factors
D. recorded factors
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Forgone contribution of resources, in to revenues because of not using resources, in next best use is classified as
A. in-source cost
B. opportunity cost
C. offshore cost
D. outsource cost
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Difference of cost, which occurs while considering alternatives can be classified as
A. dependent cost
B. independent cost
C. incremental cost
D. differential cost
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Costs such as book value of old machines are $25000 can be a classified as an example of
A. salvages
B. relevant
C. irrelevant
D. depreciated cost
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