Which of the Following Are Key Features of Target Costing

question 17

Multiple Choice

Which of the following are key features of target costing?
i. Cross functionality
ii. Market price driven
iii. Focus on customer value
iv. Based on life cycle management

• A) i, ii and iii
• B) i, iii and iv
• C) i, ii and iv
• D) All of the given answers

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Definitions:

Break-Even Point

The level of production or sales at which total costs equal total revenue, meaning the business neither earns nor loses money.

Contribution Margin Percentage

The ratio of contribution margin (sales revenue minus variable costs) to total sales revenue, expressed as a percentage.

Variable Cost Per Unit

The cost that varies with the level of output or sales, calculated on a per-unit basis.

Selling Price Per Unit

The price at which a single unit of a product is sold to customers, not including discount or additional fees.