1. When pricing products, many companies use target costing and/or cost-plus pricing methods. Briefly explain how target costing is applied to new products. How does target costing differ from cost-plus pricing?
2. What is meant by the following trade credit terms: 2/10, net 30? 4/20, net 60? 3/15, net 45?
3. What is meant by weighted average cost of capital (WACC)? How do you calculate this?