Bosworth Boots, Inc. is considering the production of a new line of boots. Based on preliminary market research, management has decided that each pair of boots should be priced at $225. Furthermore, management believes that the profit margin should be 30 percent of sales revenue. What is the target cost?

		$150.75
		$225.50
		$260.00
		$157.50

2.5 points

QUESTION 4

________________ is a systematic approach to identifying the best practices to help an organization take action to improve performance.

		Target costing
		ISO 9000
		Activity-based management
		Benchmarking