Jackson Stiles Is a Marketing Manager for Rock Hardware

question 107

Multiple Choice

Jackson Stiles is a marketing manager for Rock Hardware.His boss has told him to make sure each product earns at least a 25% net profit margin.When new products come into the store,Jackson enters data into Rock's DSS about the product,shipping and promotional costs associated with carrying the product.The DSS then calculates a target price based on this information.Jackson is using the DSS to conduct a ________ analysis.

• A)Input-Output
• B)Factor
• C)Goal seeking
• D)What-if

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Definitions:

Cost Pool

A grouping of individual costs, typically by department or service center, from which cost allocations are made to products or services.

Cost Pool

A collection of specific expenses, usually organized by department or service area, used as a basis for assigning costs to products or services.

Direct Materials Dollars

The total cost of all the raw materials used in the production of a product.

Factory Overhead Rate

Factory overhead rate is the method of allocating indirect manufacturing costs, like utilities and rent, to individual units of production based on a specific allocation base.