In Relation to Target Costing, Which of the Following Best

question 171

Multiple Choice

In relation to target costing, which of the following best describes target cost per unit?

• A) It is the targeted cost of producing one unit to achieve the current year's budgeted profit.
• B) It is the estimated long-run cost of a product that enables the company to achieve its target operating income.
• C) It is the cost that can be achieved by ensuring that the company produced its products at maximum efficiency.
• D) It is the budgeted cost that the company estimates in producing a unit in the current budget period.

Recognize the importance of the hypothalamus in linking the nervous and endocrine systems.

Understand the principles and procedures of agency interpretations of law.

Identify the purposes of negotiated settlements in administrative actions.

Recognize the requirements for regulatory flexibility analyses.

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Definitions:

Pledging Accounts Receivable

Using accounts receivable as collateral to secure a loan.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.

Recourse

In secured lending, if the asset collateralizing a loan proves not to have the value anticipated, recourse implies the borrower is still responsible for the debt. The lender is said to have recourse to the borrower.

Seasonal Working Capital

Additional working capital needed to support fluctuations in business activity due to seasonal changes in demand.