Which of the Following Is a FALSE Statement About Target

question 22

Multiple Choice

Which of the following is a FALSE statement about target costing?

• A)Target costing is a method of determining the cost of a product or service based on the price that customers are willing to pay.
• B)The cost is calculated by subtracting the desired profit from the target price.
• C)Target costing is an interactive process.
• D)Target costing is cost driven.

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Definitions:

Gap Junctions

Channels that allow for direct communication between the cytoplasm of adjacent cells, facilitating the transfer of ions and small molecules.

Desmosomes

Cell structures specialized for cell-to-cell adhesion, providing mechanical strength to tissues by binding cells together via linker proteins.

Tight Junctions

Specialized connections between neighboring cells that prevent the leakage of substances across a tissue.

Glands Ducts

Glands ducts are tubes through which glands secrete their products, such as hormones or enzymes, to their intended site of action or use.