Management Accounting - Study Mode

[#361] Method of pricing, when two separate pricing methods are used to price transfer of products from one subunit to another, is called
Correct Answer

(A) dual pricing

Explanation

Solution: Method of pricing, when two separate pricing methods are used to price transfer of products from one subunit to another, is called dual pricing. Dual pricing is a situation in which the same product or service is sold at different prices in different markets.

[#362] Cost operations such as wages, salaries, depreciation, utilities and rent are summed together to calculate
Correct Answer

(C) operating costs

Explanation

Solution: Cost operations such as wages, salaries, depreciation, utilities and rent are summed together to calculate operating costs. Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis.

[#363] Cost incur for defective products, after their shipment to customers is classified as
Correct Answer

(B) external failure costs

Explanation

Solution: Cost incur for defective products, after their shipment to customers is classified as external failure costs. External failure costs are those costs incurred due to product failures after they have been sold to customers.

[#364] Quality aspect, that refers how well product fulfils customer demands, is classified as
Correct Answer

(B) design quality

Explanation

Solution: Quality aspect, that refers how well product fulfils customer demands, is classified as design quality. Design quality is the value of a design to customers. Design is the root of all quality including the quality of products, services, experiences, systems and processes.

[#365] If number of employees who left job is 40, total number of employees are 200, then employee turnover ratio will be
Correct Answer

(C) 0.2

Explanation

Solution: If number of employees who left job is 40, total number of employees are 200, then employee turnover ratio will be 0.2. Employee turnover ratio = Number of employees who left job ÷ Total number of employees = 40 ÷ 200 = 0.2.