1)In incremental analysis,

a. only costs are analyzed.

b. only revenues are analyzed.

c. both costs and revenues may be analyzed.

d. both costs and revenues that stay the same between alternate courses of action will be analyzed.

2)The source of data to serve as inputs in incremental analysis is generated by

a. market analysts.

b. engineers.

c. accountants.

d. all of these.

3)In a competitive market, a company is forced to act as a price taker and must emphasize minimizing and controlling costs.

True or False

4)In a competitive environment, the company must set a target cost and a target selling price.

True or False

5)If a cost-based transfer price is used, the transfer price must be based on variable cost.

True or False

6)Target cost is comprised of

a. variable and fixed manufacturing costs only.

b. Total manufacturing costs only

c. total manufacturing and selling and administrative costs.

d. all costs inlcluding manufacturing and selling and administrative costs only

7)Target costing starts it focus after a product or service is in manufacturing, and tries to target areas to reduce cost from an existing cost object

True or False