Target Costing and Target Pricing Multiple Choice Questions with Answers – PDF Download

MCQ 1: An estimated price, which is expected to be paid by customers for particular market offering is classified as:

1. target price
2. target cost
3. outsource price
4. off shore price

MCQ 2: An estimated cost per unit in long run, which enables the company to achieve it's per unit target, operating income is classified as:

1. target operating income per unit
2. target cost per unit
3. total current full cost
4. total cost per unit

MCQ 3: The target price is subtracted from per unit target operating income to calculate:

1. total current full cost
2. total cost per unit
3. target operating income per unit
4. target cost per unit

MCQ 4: An income, which a company aims to earn by selling each unit of market offering is classified as:

1. target operating income per unit
2. target cost per unit
3. total current full cost
4. total cost per unit

MCQ 5: The process which leads to disassembling and analysis of competitors, operating activities to become acquainted with competitors' technologies is called:

1. outsource engineering
2. reverse engineering
3. target engineering
4. off shore engineering