With Target Costing,marketers Will First ________ and Then ________

question 19

Multiple Choice

With target costing,marketers will first ________ and then ________.

• A) build the marketing mix; identify the target market
• B) identify the marketing mix; determine product cost
• C) design the product; determine its cost
• D) use skimming pricing; penetrating pricing
• E) determine a selling price; target costs to ensure that the price is met

---

Definitions:

Prepaid Insurance

An asset account that represents insurance premiums paid in advance, which are expensed over the period the insurance coverage relates to.

Expense Incurred

Costs that a company recognizes and records on its financial statements for accounting periods in which they were incurred.

Unearned Rent Revenue

Income received from tenants for periods of occupancy that have not yet occurred, classified as a liability until earned.

Rent Revenue

Income earned from leasing out property or other assets to others.