The Target Cost Approach Assumes That

question 80

Multiple Choice

The target cost approach 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:

Cloud Point

The temperature at which some of the fractions in a diesel fuel begin to wax (solidify) and the fuel takes on an opaque appearance. This can cause problems in the fuel subsystem by plugging filters, resulting in engine shutdown. Most diesel fuel conditioners contain cloud point and pour point depressants.

Wax Crystals

Solid crystalline substances formed in some oils and fats that can cause blockages in fuel systems or cloud the appearance of liquids at lower temperatures.

Plug Filters

Devices used to remove particulate contaminants from fluids or gas streams, often installed in-line with other machinery or systems.