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PM Chapter 2 Questions Target costing

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Comments

  1. luzango says

    August 4, 2022 at 1:15 pm

    Thank you John I got 100%

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    • John Moffat says

      August 4, 2022 at 3:11 pm

      Great 馃檪

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  2. Thalia-L says

    July 26, 2022 at 1:09 pm

    Dear John, i still have some confuse about the Q2, why we can not 300*1.2=250?

    So if I do this, does that mean that 250 is the rate of return that it expects to get?

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    • John Moffat says

      July 26, 2022 at 3:53 pm

      250 is certainly not a rate of return (rates of returns are %’ages!).

      They require a return on investment of 20% and therefore they want a profit of 20% x $1,250,000.

      What you are doing would be correct if they wanted a profit on cost (i.e. a profit margin) of 20%.

      It would seem you did not watch my free lectures before attempting the test because this example is similar to example 2 in my lecture.

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  3. omavictor says

    June 22, 2022 at 3:52 pm

    Thanks John. I sincerely appreciate.

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    • John Moffat says

      June 22, 2022 at 5:16 pm

      Thank you for your comment 馃檪

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  4. adamuabass65@gmail.com says

    June 16, 2022 at 8:13 am

    Thanks John, your explanation was explicit as I scored 100% on the MCQ test.

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  5. lwhnatalie says

    April 27, 2022 at 2:28 pm

    I got full in this quiz, thanks to John’s very thorough interpretations. 馃檪

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    • John Moffat says

      April 27, 2022 at 4:07 pm

      Well done 馃檪

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  6. otema2017 says

    April 2, 2022 at 12:14 pm

    Its all good for me on this chapter

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  7. hermela says

    February 13, 2022 at 9:58 am

    thank you Mr. I get 100%… it was really very clear and digestible lecture

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  8. renelledominique says

    November 23, 2021 at 8:48 pm

    I was very confused about the 100. Still a little unsure

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    • John Moffat says

      November 29, 2021 at 5:26 pm

      Which question are you referring to?
      If it is Question 5, since the profit is 20% of the cost the selling price must be 100% + 20% = 120% of the cost.
      Therefore the target cost must be 600/120% = $500.

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      • Dumbest says

        January 20, 2022 at 4:47 am

        thank you so much lecture for the test

      • John Moffat says

        January 20, 2022 at 7:51 am

        You are welcome.

  9. melclarke says

    August 10, 2021 at 2:26 am

    It took my brain a while to figure out that reverse mathematical operation! I was only convinced when I realized that 20% of 500 (the unknown cost price) is 100 and when added gives us that 600 sale price. Defeated by math…
    Posted for anyone else coming here to figure it out.

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    • daveodipo says

      September 30, 2021 at 6:25 am

      For sure. I think the vocabulary is just as important!

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  10. Esther10 says

    July 9, 2021 at 1:25 pm

    Thanks for the lecture and the questions

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  11. etm97 says

    June 16, 2021 at 1:58 am

    Oh yeah! ?%

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  12. SSEMENGO says

    April 13, 2021 at 9:30 am

    This was perfect am probably progressing i got 100%.despite being average in chapt.1 Thank you Open tuition.

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  13. ythomas says

    March 17, 2021 at 5:04 am

    Hi, I鈥檓 confused by question 5..
    Is it possible you can do a breakdown?

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    • John Moffat says

      March 17, 2021 at 7:33 am

      The selling price is $600.

      For the profit to be 20% of the cost, the cost needs to be 100/120 x $600 = $500, and this is therefore the target cost.

      The estimated cost is actually $520, and therefore the cost gap is 520 – 500 = $20.

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  14. Ibrahim2691 says

    February 9, 2021 at 2:19 pm

    I hope am making a progress

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  15. anisnajihah99 says

    January 21, 2021 at 3:55 am

    Thank youu for the quiz . I got 8% . My mistake at Q5 , i think the markup is markup cost ??

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    • John Moffat says

      January 21, 2021 at 8:47 am

      The mark-up is the profit as a % of the cost.

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