The Following Four Tasks Take Place in the Concept Known

question 4

Multiple Choice

The following four tasks take place in the concept known as target costing.
i. Value engineering
ii. Establish a target price
iii. Establish a target cost
iv. Establish a target profit
Which of the following correctly depicts the sequence of these tasks?

• A) iii, i, iv and ii
• B) ii, iv, iii and i
• C) ii, iii, i and iv
• D) iii, ii, i and iv

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Definitions:

Exhausts

Refers to resources or supplies being completely used up or depleted.

Bananas

A tropical fruit with a yellow skin and soft, sweet flesh, often grown in clusters on large plants resembling trees.

Marginal Opportunity Cost

The cost of forgoing the next best alternative when choosing between two options.

Production Possibilities Schedule

A table that shows the different combinations of various goods that a country can produce with given resources and technology.