Match each definition that follows with the term (a-e) it defines.
-Only includes the costs of manufacturing in product cost per unit
A)Demand-based concept
B)Competition-based concept
C)Product cost concept
D)Target costing
E)Production bottleneck

Question

Quizplus · Accepted Answer

This definition matches the product cost concept, which focuses on calculating the cost of manufacturing a product, including direct materials, direct labor, and manufacturing overhead.

Answer: D 
 This definition matches target costing, which involves setting a target cost for a product based on the price that customers are willing to pay, and then designing the product and its production process to meet that cost target.

Answer: B 
 This definition matches the competition-based concept, which involves setting prices based on what competitors are charging for similar products.

Answer: A 
 This definition matches the demand-based concept, which involves setting prices based on what customers are willing to pay for a product.

Answer: E 
 This definition matches the production bottleneck, which refers to a process or point in the production line where the production capacity is limited, resulting in reduced throughput and longer lead times.

Match Each Definition That Follows with the Term (A-E) It