Which of the Following Is a FALSE Statement About Target

question 22

Multiple Choice

Which of the following is a FALSE statement about target costing?

• A)Target costing is a method of determining the cost of a product or service based on the price that customers are willing to pay.
• B)The cost is calculated by subtracting the desired profit from the target price.
• C)Target costing is an interactive process.
• D)Target costing is cost driven.

---

Definitions:

Double Chains

Structures consisting of two parallel chains of atoms or molecules bonded together, often found in silicate minerals.

Silicon Tetrahedron

A structural unit in silicate minerals, consisting of a central silicon atom covalently bonded to four oxygen atoms at the corners of a tetrahedron.

Silicate Minerals

Minerals that contain silicon and oxygen, and possibly other elements, constituting the largest family of minerals.

Silicon Tetrahedron

A fundamental building block in silicate minerals, consisting of a silicon atom surrounded by four oxygen atoms in a tetrahedral arrangement.