Answer the Following Questions Using the Information Below

question 30

Multiple Choice

Answer the following questions using the information below:
Elliott Manufacturing has decided to produce a new interior door to complement its exterior door line.The new door is expected to sell for $60 each,and the annual target sales volume for the doors is 20 000.Elliott has target operating profit of 20% of sales.
-When target costing and target pricing are used together:

• A)the focus of target pricing is to undercut the competition.
• B)the target cost is established first,then the target price.
• C)target costs are generally higher than current costs.
• D)the target cost is the estimated long-run cost that enables a product or service to achieve a desired profit.

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Definitions:

Meaning

The significance or understanding attributed to something, such as a word, symbol, or event.

Interaction

The process through which people affect or influence each other's feelings, thoughts, or actions.

Postmodernist

Relating to a late-20th-century movement characterized by broad skepticism, subjectivism, or relativism; a general suspicion of reason, and an acute sensitivity to the role of ideology in asserting and maintaining political and economic power.

Factual History

A record of past events based on empirical evidence, verified documents, and other sources that historians agree upon as accurate and true.