Target Costing Starts with an Ideal Selling Price Based on Customer

question 15

True/False

Target costing starts with an ideal selling price based on customer value considerations and then aims at costs that will ensure that the price is met.

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Definitions:

Forges

A process of forming or shaping metal objects using localized compressive forces, or to illegally copy something, like a document, with the intent to deceive.

Negotiates

The process of discussing something to reach an agreement, especially in a business or political context.

Sue

To initiate legal proceedings against a person or entity.

Loan

A sum of money borrowed from a lender that is expected to be paid back with interest.