Which of the Following Best Describes "Target Costing

question 220

Multiple Choice

Which of the following best describes "target costing"?

• A)An approach to pricing that begins with revenue at market price and subtracts desired profit to arrive at target total cost
• B)A factor that restricts production or sales of a product
• C)All costs incurred along the value chain in connection with the product or service
• D)An approach to pricing that begins with the product's total cost and adds desired profit

---

Definitions:

Essential Attributes

Fundamental qualities or characteristics that define the nature of something.

Jointly Exhaustive

A condition where all possible outcomes or cases are covered by the set of propositions or options.

Equally Abstract

Pertaining to concepts or ideas that are similarly removed from concrete reality and difficult to define precisely.

Organizing Concepts

Principles or ideas that are used to structure and categorize understanding or knowledge.