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<p><em><strong>A. The market price of the product is taken as a</strong></em></p> <p><em><strong>given.</strong></em></p> <p><em><strong>B. Only raw materials, labor, and variable</strong></em></p> <p><em><strong>overhead cannot exceed a threshold target.</strong></em></p> <p><em><strong>C. Only raw materials cannot exceed a threshold</strong></em></p> <p><em><strong>target.</strong></em></p> <p><em><strong>D. Raw materials are recorded directly to cost of</strong></em></p> <p><em><strong>goods sold.</strong></em></p>
A). target costing starts with target price
D. Raw materials are recorded directly to cost of
goods sold.
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