Target Costing Refers To

question 30

Multiple Choice

Target costing refers to:

• A)an incentive system for employees.
• B)the design of a product alone.
• C)the profit from a product and the processes used to produce it.
• D)the design of a product and the processes used to produce it to enable the firm to make a profit when products are sold.
• E)kaizen costing.

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Definitions:

Services Provided

Activities performed by a company or individual for the benefit or use of another party, typically in exchange for compensation.

Debit

An entry on the left side of an account ledger, indicating an increase in assets or expenses, or a decrease in liabilities, equity, or revenue.

Credit

A bookkeeping entry that increases the balance of liabilities and revenue accounts, or decreases the balance of an asset or expense account.

Accounts Receivable

Liabilities customers hold towards a business for the delivery of goods or services that have not been paid off.