Choose the one word or phrase that best completes the sentence and fill in the appropriate answer above.
1-
The target cost is a financial goal for the full cost of a product, ......... from estimates of selling price and desired profit (which top management sets on the basis of firm strategy and financial goals).
A -
deduced
B -
defined
C -
derived
D -
designed
2-
Product selling price is ......... by the marketplace and is determined by analysis along the entire industry value chain and across all functions in a firm.
A -
constrained
B -
contained
C -
restrained
D -
retained
3-
......... to most target-cost applications is a belief that large-scale cost planning and reduction must occur early in the product life cycle.
A -
Annexed
B -
Common
C -
Germane
D -
Popular
4-
However, Shank and Fisher believe there is no ......... reason the methodology cannot be a value-added exercise applied to existing products during manufacturing.
A -
conceptual
B -
ideal
C -
prior
D -
rational
5-
They ......... that if managers were to believe that, during manufacturing, only incremental (i.e., slight) change is possible, firms would likely miss significant strategic opportunities.
A -
plead
B -
posit
C -
promulgate
D -
pronounce
6-
Shank and Fisher present a case study that demonstrates the relevance of target-costing techniques for a process-industry plant built in the 1890s that had been making ......... the same products for fifty years.
A -
always
B -
greatly
C -
intently
D -
largely
7-
The firm's managers, who had used a standard-cost system for many years, might have concluded that ......... costing was most appropriate for this plant.
A -
kaizen
B -
kanban
C -
kolkhoz
D -
kosher
8-
However, competitive realities necessitated a major strategic change that employed target costing as an important ......... in cost-reduction efforts leading to strategic revitalization.
A -
additive
B -
condiment
C -
ingredient
D -
recipe
9-
The standard cost concept essentially dropped out of the ..........
A -
diagram
B -
picture
C -
running
D -
sight
10-
Because standard costing accepts the existing game rules and the existing value chain, the authors believe that fundamental cost ......... are much more probable when using target costing.