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Author Question: A difference in cost-plus pricing and target costing is that target costing (Read 63 times)

redpassion

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Question 1

Which of the following formulas represents the calculation for markup percentage?
◦ (Sales price - Cost) ÷ Cost
◦ Sales price ÷ Contribution margin
◦ (Sales price - Cost) ÷ Sales price
◦ Sales price ÷ Cost

Question 2

A difference in cost-plus pricing and target costing is that target costing
◦ is a simple approach while cost-plus pricing is relatively complex.
◦ starts with the price customers are willing to pay whereas cost-plus pricing starts with the cost.
◦ is generally determined after introducing a product and cost-plus pricing is determined before introducing a product.
◦ computes the desired markup while cost-plus pricing computes the maximum cost the company is willing to incur.


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Marked as best answer by redpassion on Feb 5, 2023

dude123

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redpassion

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Reply 2 on: Feb 5, 2023
Excellent


JCABRERA33

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Reply 3 on: Yesterday
Gracias!

 

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