In Target Costing, Managers Can

question 24

Multiple Choice

In target costing, managers can:

• A) Focus on motivating customers to pay a higher price
• B) Push some cost reductions to suppliers
• C) Try to establish their product as a commodity
• D) Justify higher costs by making production processes more complex

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Definitions:

Potential Energy

is the energy stored within an object or system due to its position, condition, or configuration, capable of being converted into kinetic energy.

Enthalpy

The total potential energy of a system; sometimes referred to as the “heat content of the system.”

Usable Energy

The portion of energy in a system or process that can be effectively utilized to perform work.

Organized

Being arranged in an orderly, structured, and coherent manner, often referring to systems, entities, or activities.