Question

12 - What is target cost per​ unit?

A.Target cost per unit is the average total unit cost over the​ product's life cycle.
B.Target cost per unit is the average total unit cost over the contribution margin ratio.
C.Target cost per unit is the contribution margin per unit over the average total unit cost.
D.Target cost per unit is the variable unit cost over the​ product's life cycle.

13 - What is value​ engineering?

A.Charging different prices to different customers for the same product or service.
B. A​ cost-reduction technique, used primarily during the design function in the value​ chain, that uses information about all value chain functions to satisfy customer needs while reducing costs.
C.Continuous improvement during manufacturing.
D.The effect of price changes on sales volume.

Answer 1

12 Answer: Option A) Target cost per unit is the average total unit cost over the ​product's life cycle.

Explanation:

Target cost per unit is the estimated or predicted for a long run cost per unit of production of any product and service that would enabled to gain target income per unit when its sold.

Target cost per unit = Total target price - The Target operating profit on a per unit basis.

Therefore, The target cost per unit is the average total unit cost over the product's life cycle.

Thus, Option A) is correct and remaining options are incorrect.

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13 Answer: Option B) A​ cost-reduction technique, used primarily during the design function in the value​ chain, that uses information about all value chain functions to satisfy customer needs while reducing costs.

Explanation:

Value of engineering is a systematic method to improve the value of goods or products and services by using the value chains and examination of function for reducing cost of the product.

The most of the companies uses the value of engineering for the reducing costs of products and satisfy the customer needs.

Therefore, Value of engineering is a​ cost-reduction technique, used primarily during the design function in the value​ chain, that uses information about all value chain functions to satisfy customer needs while reducing costs.

Thus, Option B) is correct and remaining options are incorrect.