Target Costing Starts With

question 6

Multiple Choice

Target costing starts with:

• A)the selling price of an organization's end product minus the operating profit to establish the target cost.
• B)the supplier's price,and works to determine the selling price of the buying organization's end product or service.
• C)the supplier's price,and works to determine the supplier's true cost structure.
• D)the buyer's lowest reasonable price target,and works to a negotiated price agreed on by the buyer and the supplier.
• E)the selling price of an organization's end product minus actual manufacturing,overhead,and materials costs to determine operating profit.

---

Definitions:

Dural Venous Sinus

Vein-like spaces between the dura mater layers of the brain, draining blood from the brain.

Subarachnoid Space

The area between the arachnoid membrane and the pia mater around the brain and spinal cord, filled with cerebrospinal fluid.

Midsagittal Section

A vertical plane that divides the body into equal right and left halves, commonly used in anatomical terminology.

Right Half

Typically refers to the right side or hemisphere of an organ or the body, involved in specific functions distinct from the left side.