Which of the statement is not a true reflection of Target cost gap ? The target cost gap = Estimated product cost - Target cost The first step is to establish a competitive market price TheTarget cost gap is established in the 4th step of the target cost process A target cost gap

Which of the statement is not a true reflection of Target cost gap ? The target cost gap = Estimated product cost - Target cost The first step is to establish a competitive market price TheTarget cost gap is established in the 4th step of the target cost process A target cost gap

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

Which of the statement is not a true reflection of Target cost gap ?

The target cost gap = Estimated product cost - Target cost

The first step is to establish a competitive market price

TheTarget cost gap is established in the 4th step of the target cost process

A target cost gap is predetermined

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