Which of the Following Statements Is Consistent with Target Costing

question 8

Multiple Choice

Which of the following statements is consistent with target costing?

• A) It does not consider market share or sales volume.
• B) Market prices are used to determine product costs.
• C) Product design has little or no regard for the long-run manufacturing costs.
• D) It is described as a reactive costing strategy, rather than a proactive costing strategy.

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Definitions:

Planning

The process of creating and maintaining a plan, which involves setting objectives, determining strategies to achieve those objectives, and organizing resources.

Controlling

In management, refers to the process of monitoring performance, comparing it with goals, and taking corrective action as needed.

Finance

The management of large amounts of money, especially by governments or large companies.