Target Costing Is Arrived at by Taking

question 54

Multiple Choice

Target costing is arrived at by taking

• A) the selling price minus desired profit
• B) the selling price and adding desired profit
• C) the selling price and subtracting the budget standard cost
• D) the budget standard cost and reducing it by 10%

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, such as labor or capital.

Land

Refers to natural resources or the surface of the earth, including fields, forests, and minerals, which are used for production.

Henry George

Henry George was a 19th-century economist and social philosopher known for his advocacy for a single tax on land value to address social inequalities.

Single Tax

Single tax refers to a fiscal policy proposal where one type of tax, often on land value, replaces all other taxes to simplify the tax system and address economic inequality.