Alway Candy Corporation Is Implementing a Target Costing Approach for Its

question 134

Multiple Choice

Alway Candy Corporation is implementing a target costing approach for its latest new product, the "Big Glob" candy bar. The following information relates to the Big Glob: Based on this information, what is Alway's target selling price per bar for the Big Glob?

• A) $0.70
• B) $0.72
• C) $0.75
• D) $0.80

---

Definitions:

Drawer

A drawer is a person or entity that issues or writes a check or draft, instructing a bank or similar institution to pay a specific amount of money to a designated party.

Drawee

The party on whom a cheque or draft is drawn, responsible for paying the specified amount on the instrument.

Payee

The party in a financial transaction who receives the payment.

Unconditional Promise

A firm commitment or guarantee without any stipulations or requirements for its fulfillment.