Emphasis on Departmental Efficiency

question 106

Multiple Choice

Emphasis on departmental efficiency

• A) causes bottleneck departments to over-produce and build work-in-process inventories.
• B) causes stock outs related to demand-pull systems.
• C) is a critical component of a lean accounting system.
• D) none of these.

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Definitions:

Cost-Plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product to determine its selling price.

Mark-Up Percentage

The fraction that is added onto the cost price of items to include overhead costs and profit within the selling price.

Cost-Plus Pricing

A pricing method that involves adding a consistent percentage markup to the total production cost of a product or service to set its sale price.

Mark-Up Percentage

The percentage added to the cost price of goods to cover overhead and profit, determining the selling price.