When the Firm Uses the Target-Costing Approach to Pricing,the Target

question 5

Multiple Choice

When the firm uses the target-costing approach to pricing,the target cost per unit is the difference between the per unit target price and the per unit target:

• A)operating profit.
• B)contribution margin.
• C)production costs.
• D)gross margin.

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Definitions:

Original Obligor

The original party responsible for repaying a debt or fulfilling an obligation under the terms of a contract.

Creditor Beneficiary

A third party that benefits from a contract made between two other parties because the contract discharges a debt or duty owed to them.

On Credit

The purchase of goods or services with the promise to pay at a future date.

Just Books

a term potentially referring to a concept of fairness in accounting practices, ensuring that records are accurate and truthful.