Answer the Following Questions Using the Information Below

question 69

Multiple Choice

Answer the following questions using the information below:
Elliott Manufacturing has decided to produce a new interior door to complement its exterior door line.The new door is expected to sell for $60 each,and the annual target sales volume for the doors is 20 000.Elliott has target operating profit of 20% of sales.
-The product strategy in which companies first determine the price at which they can sell a new product and then design a product that can be produced at a low enough cost to provide adequate operating profit is referred to as:

• A)full costing.
• B)cost-plus pricing.
• C)target costing.
• D)Kaizen costing.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and everyday life, including digital, mechanical, and medical advancements.

Labour Productivity

A measure of economic performance that compares the amount of goods and services produced with the number of hours worked.

Manhole Covers

Heavy, typically circular plates that cover manholes, providing access to underground utilities while preventing accidents or unauthorized entry.

Foundry

An industrial facility where metals are melted and cast into shapes by pouring the molten metal into molds.