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:

Hasty Generalization

A logical fallacy where a conclusion is not logically justified by sufficient or unbiased evidence.

Arguments

Reasons given in proof or rebuttal, or discussions aimed at reaching a conclusion through reasoning.

Trout

A common name for several species of freshwater fish belonging to the salmon family, often valued as food and game.

Reds

Refers colloquially to red wine or to teams wearing red uniforms; context could specify further meaning.