Which of the Following Is True of Target Costing

question 42

Multiple Choice

Which of the following is true of target costing?

• A) the target cost is the target price minus the target operating income per unit
• B) the target cost includes all past costs to produce the product
• C) input from suppliers and distributors are not relevant.
• D) a key goal is to minimize value added activities of a product.

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Definitions:

Confidentiality

The obligation to safeguard personal or sensitive information from unauthorized access or disclosure.

Situational Interview

A structured interview in which the interviewer describes a situation likely to arise on the job, then asks the candidate what he or she would do in that situation.

Nondirective Interview

An interview style where the interviewer poses open-ended questions and allows the interviewee to guide the conversation.

Open-ended Questions

Questions that cannot be answered with a simple 'yes' or 'no' response, encouraging detailed and thoughtful answers.