Place the Following Steps for the Implementation of Target Costing

question 55

Multiple Choice

Place the following steps for the implementation of target costing in order:
A = Derive a target cost
B = Develop a target price
C = Perform value engineering
D = Determine target operating income

• A) B D A C
• B) B A D C
• C) A D B C
• D) A B C D

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Conflict Diamonds

Diamonds that are mined and sold by combatants in war zones in Africa as a way to provide the currency needed to finance their military activities.

Property Rights

Property rights are legal rights to use, control, and benefit from a particular property or resource, which can include both tangible and intangible assets.

Extraction Rate

pertains to the speed or efficiency with which a resource (like oil or minerals) is removed from its natural setting or source.