The __________ Method Focuses on Setting Prices by Fixing a Profit

question 11

Multiple Choice

The __________ method focuses on setting prices by fixing a profit margin over established product costs and thus ensures a more stable, predictable profit.

• A) market-based
• B) cost-based
• C) skimming
• D) penetration
• E) centralized

Apply the FIFO method to process costing scenarios.

Analyze and prepare cost reconciliation reports.

Understand the FIFO (First-In, First-Out) method in process costing.

Compute equivalent units of production using the FIFO method.

---

Definitions:

MRP

Material Requirements Planning, a system for planning production and inventory control, ensuring materials and products are available for production and delivery.

Time Period

Refers to a specific duration or interval in which certain events or processes take place.

Net Requirements

The actual amount of materials or resources needed for production, calculated after considering the on-hand inventory and pending orders, to meet the production schedule.