Which of the Following Statements Concerning Target Costing Is NOT

question 21

Multiple Choice

Which of the following statements concerning target costing is NOT true?

• A)Implementing target costing requires detailed information on the cost of alternative activities.
• B)Target costing can be applied to components of products as well as the new products as a whole.
• C)A primary advantage of target costing is that it requires little or no coordination among processes.
• D)Short product life cycles increase the importance of target costing.

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Definitions:

Phosphate Group

A chemical group consisting of phosphorus bonded to four oxygen atoms, important in energy transfer.

Photorespiration

A process in plant metabolism where the enzyme RuBisCO oxygenates RuBP, wasting energy and reducing photosynthetic efficiency under certain conditions.

C3

A pathway in photosynthesis where the fixation of carbon dioxide produces a three-carbon compound as the first stable product.

C4

A photosynthetic pathway that efficiently fixes carbon dioxide in plants exposed to high light intensity and temperature, found in many grasses and crops.