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Question
Equival Company wishes to sell truck axles to car manufacturers. The current market price of the axles is $400, and Equival knows it must accept the market price. The company wishes to make a profit equal to 20% of the price. Using target costing, Equival will have to design the production process to meet this requirement. What is the desired target cost per axle?
A) $320
B) $480
C) $420
D) $380
Answer
This answer is hidden. It contains 82 characters.
Related questions
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Aug
Sep Cash collections
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$40,000
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18,000 Operating expenses
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0
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Jun Cash collections
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Q:
Which of the following is TRUE of a completed worksheet?
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B) classified form balance sheet.
C) account form balance sheet.
D) audited form balance sheet.
Q:
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Q:
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B) posting.
C) proofing.
D) footing.
Q:
A) chart of accounts.
B) ledger.
C) trial balance.
D) journal.
Answer: B
Q:
Which of the following statements about revenue is CORRECT?
A) Revenues decrease owner's equity, so a revenue account's normal balance is a credit balance.
B) Revenues decrease owner's equity, so a revenue account's normal balance is a debit balance.
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D) Revenues increase owner's equity, so a revenue account's normal balance is a credit balance.
Q:
The balance of an account is the:
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B) account number, as shown in the chart of accounts.
C) sum of the debits only.
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Q:
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B) finding the account number in the chart of accounts.
C) recording the transaction, including a brief explanation.
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Q:
In the accounting system, the first place that transactions are recorded is the ledger.
Q:
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Q:
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At the end of the year, actual data were as follows:
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B) $6,300 Unfavorable
C) $12,000 Favorable
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