(CMA) In target costing
A) The market price of the product is taken as a given
B) Only raw materials, labor, and variable overhead cannot exceed a threshold target
C) Both labor and manufacturing overhead are charged directly to conversion costs
D) Only raw materials cannot exceed a threshold target

Question

Quizplus · Accepted Answer

Target costing starts with the market price and works backward to determine the allowable costs to ensure profitability.

(CMA) in Target Costing