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.

---

Definitions:

Experimental

Pertains to a trial or preliminary experiment method used to explore the validity of a hypothesis or understand cause-and-effect relationships.

Naturalistic Observation

A research method in which subjects are observed in their natural environment without intervention from the researchers.

Naturalistic Environment

A setting that closely mimics the real-world or natural conditions in which behaviors or phenomena occur.

Laws Of Behavior

Fundamental principles that describe how behaviors are learned and exhibited by individuals, often studied in psychology and behavioral science.