True or False

1) Cost distortion can occur under the target-costing approach.

2) When a firm has excess capacity, a price that covers the incremental costs incurred because of the job will contribute toward covering the companys fixed cost and profit.

3) When a computer-integrated manufacturing (CIM) system is used, the process of target costing sometimes is computerized.

4) Skimming pricing is another name for penetration pricing.