Target Costing Sets Costs Based on the Price That Customers

question 136

True/False

Target costing sets costs based on the price that customers are willing to pay.

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Definitions:

Business Idea

An initial concept which someone intends to turn into a viable business opportunity, focusing on a product, service, or innovation to fulfill a market need.

Potential Customers

Individuals or organizations that are considered likely to purchase a company's products or services but have not yet done so.

Home Care Business

A company that provides medical, therapeutic, or personal care services to individuals in their own homes.

Feasibility Study

A preliminary study conducted to ascertain how plausible a proposed project or system is, factoring in economic, technical, legal, and scheduling considerations.