Which of the Following Is Not a Similarity Between Target

question 28

Multiple Choice

Which of the following is not a similarity between target costing and Kaizen costing?

• A) They both rely on goal setting to achieve cost reduction
• B) They both encourage organizations to work with suppliers to reduce costs
• C) They both take advantage of the trade-offs between price, functionality and quality
• D) They both occur at the beginning of the product life cycle

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Definitions:

Express Promise

A clear and specific commitment stated by one party to another, often forming the basis of an express contract.

Consideration

In contract law, something of value promised, given, or received that motivates parties to enter into an agreement.

Time Draft

A written order to pay a specified amount of money at a future date.

Debtor-Creditor Relationship

A financial relationship where one party (the debtor) owes a debt to another party (the creditor).