Which of the Following Is True of Target Costing

question 121

Multiple Choice

Which of the following is true of target costing?

• A) In target costing, all future costs are considered for long-run pricing.
• B) In target costing, cost is the starting point for determining the price of the product.
• C) In target costing, input from suppliers and distributors are not relevant.
• D) In target costing, a key goal is to minimize value added activities of a product.

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Definitions:

Applicants

Individuals who apply or show interest in a job position or educational program.

Recruit Externally

The process of hiring employees from outside the organization rather than promoting from within.

Present Employees

The current workforce of an organization.

Human Resources

Refers to the department within an organization responsible for managing all matters related to its employees including recruiting, training, compensation, and ensuring compliance with labor laws.