Management Accounting - Study Mode
[#151] An estimated price, which is expected to be paid by customers for particular market offering is classified as
Correct Answer
(A) target price
Explanation
Solution: An estimated price, which is expected to be paid by customers for particular market offering is classified as target price. Target price is on which Investor want to sell the security.so investor put his target price in his/her demat account while place selling order.
[#152] An insensitivity of demand in relevance to change in price will be called
Correct Answer
(D) demand inelasticity
Explanation
Solution: An insensitivity of demand in relevance to change in price will be called demand inelasticity. Inelastic demand is when the buyer's demand does not change as much as the price changes.
[#153] Types of costs of quality consist of
Correct Answer
(D) all of above
Explanation
Solution: Types of costs of quality consist of appraisal costs, internal and external failure costs and prevention costs.
[#154] If cost of direct materials use in goods sold is $5000 and total revenues are $9000 then throughput contribution would be
Correct Answer
(C) $4,000
Explanation
Solution: Throughput contribution = Total revenues - Cost of direct materials use in goods sold = $9000 - $5000 = $4,000.
[#155] Time a company takes until a good is produced after order placement is known as
Correct Answer
(A) manufacturing lead time
Explanation
Solution: Time a company takes until a good is produced after order placement is known as manufacturing lead time. The manufacturing lead time is the time period between the placement of an order and the shipment of the completed order to the customer.