Question

In which step does target-costing’s real rigor first come into play? a. Step 2: Establish target sales price b. Step 3: Compute target cost c. Step 4: Perform cost breakdown d. Step 5: Engage in target costing process

Answer 1

Option (a) is the correct answer to this question.

Explanation:

Establishing the sales price is trivial

The sale is a transaction involving multiple parties in which favorable or unfavorable goods, services, or properties are acquired by the buyer in return for wages. Many funds are paid out to a vendor in some situations. A sale in the financial markets may also refer to an agreement reached by sellers and buyers concerning the price of a commodity.