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.

---

Definitions:

Profit and Invested Capital

The return generated from the capital invested in a business, often analyzed to assess the efficiency and profitability of the investment.

Revenue Centre Manager

An individual responsible for overseeing a business unit or division that is focused on generating revenue, without direct control over costs or investment decisions.

Gross Margin

A company's revenue minus its cost of goods sold, expressed as a percentage of revenues, indicating the efficiency of production and sales.

Transfer Price

The price at which goods and services are sold between divisions within the same company, used for internal sales and profit allocation.