Multiple Choice
If the existing unit cost is above a target cost per unit, then
A) the unit selling price is adjusted upward to cover the unit cost.
B) cost analysis is performed to identify which components of the product/service can be targeted for cost reduction.
C) the company should not manufacture and sell this particular product/service.
D) the company should recompute the cost per unit only using the variable unit costs.
Correct Answer:
Verified
Correct Answer:
Verified
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