The target costing approach was developed in recognition of two important characteristics of markets and costs. First, many companies have less control over price than they like to think. Second, most of a product's cost is determined when it is designed.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Which of the following trends has been observed in the world population in terms of aging?
A. People aged 65 and older will soon outnumber children under age 5 for the first time in history. B. The world's population aged 80 and over is projected to shrink to less than half its current estimate between the years 2008 and 2040. C. The world's population is growing younger at a faster rate than it did in comparison with the previous two centuries. D. As nations have advanced economically, birthrates have increased in proportion and contributed to the subsequent decrease in the median age of the world's population.
Which of the following would most likely be a question asked by the stockholders of a firm?
A. Is performance feedback being given to the employees in a constructive manner? B. Has the management generated a strong-enough return on their investment? C. Is the management looking into issues related to harassment at the workplace? D. Are there suppliers in the market who can provide resources at a lower cost?
The minimum wage was established by Congress but is increased through judicial decisions
Indicate whether the statement is true or false
Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,900 units, but its actual level of activity was 5,940 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:Data used in budgeting: Fixed element per monthVariable element per unitRevenue - $32.60 Direct labor$0 $3.90Direct materials 0 12.10Manufacturing overhead 33,400 1.80Selling and administrative expenses 28,300 0.40Total expenses$61,700 $18.20?Actual results for May: Revenue$200,564Direct labor$22,786Direct materials$73,824Manufacturing overhead$43,922Selling and administrative
expenses$31,896?The direct materials in the flexible budget for May would be closest to: A. $71,390 B. $73,327 C. $74,325 D. $71,874