TB MC Qu$.13$A$-5($Static$)$ Which of the following statements...

Which of the following statements is true?

The target costing approach was developed in recognition of two important characteristics of markets and costs. First, many companies have less control over price than they like to think. Second, most of a product's cost is determined when it is designed.

In target costing, the cost of a product is the starting point and the selling price follows from the cost.

Target costing is primarily used with well$-$established products.

Multiple Choice

Only statement $1$ is true.

Only statement $2$ is true.

Only statement $3$ is true.