Which of the Following Statements Is Characteristic of Target Costing

Multiple Choice

Which of the following statements is characteristic of target costing?

A) It is a useful tool for establishing cost reduction goals for products in the design stage.
B) It is the difference between the sales price needed to capture a predetermined market share and the desired per-unit gross profit.
C) Target costs are internally driven.
D) The principal challenge of target costing is finding the cause of the costs.