When Target Costing Is Used,the Target Cost Is Determined By

question 2

Multiple Choice

When target costing is used,the target cost is determined by:

• A)finding the difference between the market price and the amount of profit needed to satisfy stakeholders.
• B)adding the cost of direct materials,direct labor,and activity costs of a product.
• C)subtracting all nonvalue-added costs from total manufacturing costs of a product.
• D)adding the manufacturing and nonmanufacturing costs of the product.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Spontaneous Recovery

A phenomenon in psychology where previously extinguished responses re-emerge after a pause without further conditioning.

Lab Experiment

A research study conducted in a controlled environment where variables can be manipulated to observe their effect on various outcomes.

Behavior Modification

The direct and systematic application of principles of learning to change maladaptive or unwanted behaviors into more desirable behaviors.