1. Cost-based pricing systems invariably involve pricing products based on their full absorption costs.

   True

   False

2. Target costing is a method of costing developed by the Swedish auto manufacturers that begins with the estimated price that customers are willing to pay for a product, and then subtracts the desired profit to determine the cost targets that must be met.

   True

   False

3. Benchmarking is just a more elegant term for corporate espionage.

   True

   False