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:

Holder In Due Course

A party that acquires a negotiable instrument in good faith and for value, and is thus protected from many defenses that could be raised against the original payee.

Consumer Credit Contract

A legal agreement between a borrower and a lender where the lender provides the borrower with credit for personal, family, or household purposes.

Misdirected Payment

Misdirected payment occurs when a payment is sent to an incorrect party or destination, either due to error or misunderstanding.

Bankruptcy

A lawful method that enables individuals or enterprises in financial distress to pursue exemption from part or all of their financial liabilities.