Which of the Following Is Not a Key Feature of Target

question 34

Multiple Choice

Which of the following is not a key feature of target costing?

• A)The use of cross-functional teams.
• B)A focus on the customer.
• C)A focus on product design.
• D)A focus on process design.
• E)A focus on application of fixed manufacturing cost.

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Definitions:

Self-Control Problems

Refers to the difficulty people have in sticking with earlier plans and avoiding suboptimal decisions when finally confronted with a particular decision-making situation. A manifestation of time inconsistency and potentially avoidable by using precommitments.

Time Inconsistency

The human tendency to systematically misjudge at the present time what will actually end up being desired at a future time.

Behavioral Economists

Economists who study the psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Precommitments

Actions taken ahead of time that make it difficult for the future self to avoid doing what the present self desires. See time inconsistency and self-control problems.