When Target Costing and Target Pricing Are Used Together

question 72

Multiple Choice

When target costing and target pricing are used together

• A)the target cost is established first, then the target price.
• B)the target cost per unit is the estimated long-run price per unit that enables a product or service to achieve the target profit per unit.
• C)the target price is set to undercut the competition.
• D)target costs are higher than current costs because of inflation over time.
• E)target price is the estimated price for a product or service that a potential customer will be willing to pay.

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Definitions:

Dopamine

A neurotransmitter involved in controlling movement and posture, as well as modulating mood, reward, and addiction.

Schizophrenic Disorder

A mental health disorder characterized by disturbances in thought, perception, and behavior, leading to a disconnection from reality.

Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry, fear, or anxiety that interferes with daily activities.

Positive Symptoms

In psychology, symptoms that involve the presence of abnormal behaviors or experiences, such as hallucinations or delusions, often seen in schizophrenia.