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When Target Costing Is Used,the Target Cost Is Determined By

Question 2

Multiple Choice

When target costing is used,the target cost is determined by:


A) finding the difference between the market price and the amount of profit needed to satisfy stakeholders.
B) adding the cost of direct materials,direct labor,and activity costs of a product.
C) subtracting all nonvalue-added costs from total manufacturing costs of a product.
D) adding the manufacturing and nonmanufacturing costs of the product.

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