Costing and the Value Chain

Non$-$value added activities are those that add to a product's desirability.

True False

The process of using ABC to help reduce and eliminate non$-$value$-$added activities is

activity$-$based management.

True False

In the target costing process, target price is computed by adding the desired profit margin to

the target product cost.

True False

Target cost equals target price plus profit margin.

True False