The Target Costing Method Assumes That

question 140

Multiple Choice

The target costing method assumes that

• A)markup is added to total cost
• B)the selling price is set by the marketplace
• C)markup is added to variable cost
• D)markup is added to product cost

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a particular good or service at a lower opportunity cost than its competitors.

Import

The act of bringing goods or services into a country from abroad for the purpose of trade.

Export

The sale of goods or services from one country to another.

Trucks

Large heavy-duty vehicles designed for transporting goods and materials over long distances.