Chapter 21 Flashcards
1
Q
Target cost
A
Market price - Desired profit
2
Q
Markup (profit)
A
Selling price - cost
3
Q
ROI
A
Net income / invested asset
4
Q
Target selling price
A
Cost + markup
5
Q
Cost-Plus Pricing
Variable cost per unit
A
Direct materials + direct labor + variable manufacturing overhead + variable selling and administrative expenses
6
Q
Cost-Plus Pricing
Fixed cost per unit
A
Fixed manufacturing overhead + fixed selling and administrative expenses
7
Q
Cost-Plus Pricing
Sales price per unit
A
Variable cost + fixed cost + markup (desired ROI per unit)
8
Q
Markup percentage
A
Markup (desired ROI per unit) / total unit cost
9
Q
Target selling price per unit
A
Total unit cost + (Total unit cost x markup percentage)
