Which Statement Is True Concerning Target Costing

question 60

Multiple Choice

Which statement is true concerning target costing?

• A)Target costing is setting price below costs in the short run to drive out competitors.
• B)Target costing is the systematic evaluation of all costs relevant to a decision.
• C)Target costing is the concept of price-based costing.
• D)None of the answers is correct.

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Definitions:

Hypothetical Basis

A theoretical foundation or scenario used for analysis or argument, often constructed to explore possibilities or outcomes.

Disclosure

Disclosure is the act of making new or vital information known, particularly facts that could influence decisions in a financial, legal, or personal context.

Franchise

A licensing arrangement where a franchisor allows a franchisee to use its business model, brand, and rights to sell its products or services.

Retail Beverage

Refers to drinks, including alcoholic and non-alcoholic, that are sold directly to consumers through retail outlets.