1. Major influences of competitors, costs, and customers on pricing decisions are factors of:

a. supply and

demand.

b. activity-based costing and activity-based management.

c. key management themes that are important to managers attaining success in their planning and control decisions.

d. the value-chain concept.

2. The best opportunity for cost reduction is

a. during the manufacturing phase of the value chain.
b. during the product-process design phase of the value chain.
c. during the marketing phase of the value chain.
d. during the distribution phase of the value chain.

3. Each month, Haddon Company has $275,000 total manufacturing costs (20% fixed) and $125,000 distribution and marketing costs (36% fixed). Haddon’s monthly sales are $500,000. The markup percentage on full cost to arrive at the target (existing) selling price is

a. 25%

b. 75%

c. 80%

d. 20%