Which of the Following Statements Is NOT Consistent with Target

question 62

Multiple Choice

Which of the following statements is NOT consistent with target costing?

• A) The target cost is the anticipated selling price less the desired profit.
• B) The technique is most useful in the manufacturing stage of a product.
• C) Effective target costing is an integral part of continuous improvement (Kaizen costing) as a management philosophy.
• D) In target costing, the anticipated selling price of a product determines the maximum allowable cost for the product.

---

Definitions:

Acute Stress Disorder

A mental health condition characterized by the development of severe anxiety, dissociation, and other symptoms occurring within one month after exposure to a traumatic event.

Hurricane

A hurricane is a powerful tropical cyclone with sustained winds of at least 74 miles per hour, known for causing significant weather-related disasters.

Panic Disorder

A psychiatric disorder characterized by sudden and repeated episodes of intense fear or discomfort along with physical symptoms, such as a racing heart or shortness of breath.

Post-Traumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event such as a natural disaster, a serious accident, a terrorist act, war/combat, rape, or other violent personal assault.