Question 1
When materials and supplies are used in a production facility to assemble and finish a product that will be sold to customers, the usage of the materials and supplies is described as:
◦ Cost incurrence
◦ Locked-in cost
◦ Opportunity cost
◦ Designed-in cost
Question 2
Which f the following methods focuses on reducing costs during the manufacturing stage?
◦ Target costing
◦ Kaizen costing
◦ Cost-plus pricing
◦ Life-cycle costing