Which of the Following Is a FALSE Statement About Target

question 22

Multiple Choice

Which of the following is a FALSE statement about target costing?

• A)Target costing is a method of determining the cost of a product or service based on the price that customers are willing to pay.
• B)The cost is calculated by subtracting the desired profit from the target price.
• C)Target costing is an interactive process.
• D)Target costing is cost driven.

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Definitions:

Canada Post

The primary postal operator in Canada, responsible for the collection, sorting, transportation, and delivery of mail and packages across the country and internationally.

Disbursement Float

The time lag between when a payment is issued by a company and when the funds are actually removed from the company’s account.

Chequing Account

A bank account that allows the holder to make deposits, withdrawals, and payments via cheques and is typically used for everyday transactions.

Paycheque

A check issued to an employee for earned wages, representing the net amount after deductions such as taxes and social security contributions.