A Target Cost Is Computed as

question 23

Multiple Choice

A target cost is computed as

• A)the cost to manufacture plus a desired mark up.
• B)the cost to manufacture plus the designated selling expenses.
• C)the market willingness to pay less the cost to manufacture.
• D)the market willingness to pay less the desired profit.

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Definitions:

Fixed

A characteristic, value, or condition that remains constant and unchanged across different situations or over time.

Stable

Referring to something that is not likely to change or move; in psychology, it may refer to consistent personality traits or conditions.

Internal Attributions

The process of attributing the cause of one's own or another's behavior to internal, personal characteristics rather than to external factors.

External Attributions

The process of assigning the cause of behavior to some situation or event outside a person's control rather than to some internal characteristic.