Which of the Following Statements Concerning Target Costing Is(are) Accurate

question 70

Multiple Choice

Which of the following statements concerning target costing is(are) accurate?

• A)Japanese managers who pioneered the approach view target costing as a profit-management tool.
• B)The approach is designed to reach market segments comprised of buyers who consistently select the lowest-priced alternative.
• C)Target costing tends to move product developers toward products that include only the bare essentials.
• D)All of the answer choices.

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Definitions:

Contractual Interest Rate

The agreed-upon rate of interest that is to be applied on the principal amount of loans, bonds, or other forms of debt as specified within a contract.

Market Interest Rate

The rate of interest prevailing in the market that lenders demand and borrowers pay for funds.

Contractual Interest Rate

The agreed-upon rate of interest that is to be applied to the principal amount in a financial contract.

Discount

A reduction in the price of goods or services, typically offered to encourage purchases.