Which of the Following Statements Is Characteristic of Target Costing

question 103

Multiple Choice

Which of the following statements is characteristic of target costing?

• A)It is a useful tool for establishing cost reduction goals for products in the design stage.
• B)It is the difference between the sales price needed to capture a predetermined market share and the desired per-unit gross profit.
• C)Target costs are internally driven.
• D)The principal challenge of target costing is finding the cause of the costs.

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Definitions:

Double-Blind Study

An experimental design in which neither the participants nor the researchers know who is receiving a particular treatment, to prevent bias.

Test-Retest Reliability

A measure of consistency where the same test is administered to the same group of people at two different points in time, and the scores are compared.

Experimenter Effects

Unintended changes in study participants’ behavior due to cues that the experimenter inadvertently conveys.

Representative Sample

A subset of a population that accurately reflects the members of the entire population.