Target Cost Is Comprised of

question 107

Multiple Choice

Target cost is comprised of

• A) variable and fixed manufacturing costs only.
• B) variable manufacturing and selling and administrative costs only.
• C) total manufacturing and selling and administrative costs.
• D) fixed manufacturing and selling and administrative costs only.

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Definitions:

Salaries Expense

The total amount recorded by a business for the wages and salaries paid to employees during a reporting period.

Partially Funded Pension Rights

Pension benefits that are partially backed by funding; not fully financed in advance.

Pension Expense

The cost recognized by an employer for the estimated liabilities of pension payments to retirees.

Salaries Expense

The cost incurred by a company to pay for employee services performed during a period.