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Hi John!
Which of the following statements about target costing is not true?
1.Target costing is better suited to assembly orientated industries than service industries that have a large fixed cost base.
2.Costs may be reduced in target costing by removing product features that do not add value.
3.A target cost gap is the difference between the target cost for a product and its projected cost.
4.Products should be discontinued if there is a target cost gap.– 4 is the answer.
– Why 1 could not be the answer?
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