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Which of the Following Is a FALSE Statement About Target

Question 3

Multiple Choice

Which of the following is a FALSE statement about target costing?


A) Target costing is a method of determining the cost of a product or service based on the price that customers are willing to pay.
B) The cost is calculated by subtracting the desired profit from the target price.
C) Target costing is an interactive process.
D) Target costing is cost driven.

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