When a Firm Determines the Desired Cost for a Product

question 82

Multiple Choice

When a firm determines the desired cost for a product or service, given a competitive market price, in order to earn a desired profit, the firm is exercising:

• A) Target costing.
• B) Life cycle costing.
• C) Variable costing.
• D) Absorption costing.
• E) Competitive costing.

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Definitions:

Ear-marking

Allocating specific funds for a particular purpose or project, often used in governmental budgeting practices.

Appropriation

The act of setting aside funds by a legislative body for specific governmental purposes.

Collaborations

Joint efforts or partnerships between individuals, organizations, or entities to achieve common goals.

Pool Funds

Financial resources combined from multiple sources or agencies to maximize efficiency, effectiveness, and flexibility in funding programs or projects.