1. In a target costing situation, you would use the mandated gross margin to:
1. In a target costing situation, you would use the mandated gross margin to:
a. Derive the expected number of units sold
b. Calculate the maximum target cost
c. Estimate revenue
d. Estimate the amount of cost reduction required
2. In a target costing program, you would deliberately reduce a product’s planned durability in order to:
a. Shorten the product life, thereby forcing customers to buy the product again
b. Reduce costs to a target level
c. Eliminate difficult-to-acquire materials from the product
d. Force customers to upgrade to another product that is more durable
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Posted 07 Jun 2017 07:06 AM
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