Target Costing Sets Prices by Computing an Average Cost and Then

question 29

True/False

Target costing sets prices by computing an average cost and then adding a desired markup.

---

Definitions:

Other Components

Additional parts, elements, or ingredients that are part of a larger system but not specified in the initial consideration.

Microcomputers

Small-sized computers that are powerful enough for individual use, including personal computers.

General-Purpose Computers

Computers designed to perform a wide range of tasks, as opposed to being specialized for particular tasks.

Least Expensive

The option available that has the lowest cost associated with it.