Which of the following is true of target costing?

		In target costing, a key goal is to minimize value added activities of a product.
		In target costing, cost is the starting point for determining the price of the product.
		In target costing, all future costs are considered for long-run pricing.
		In target costing, input from suppliers and distributors are not relevant.

Discontinuing an unprofitable customer ________.

		will eliminate all costs assigned to the customer and will always decrease firm profitability.
		will not eliminate all costs assigned to the customer and may result in a decrease in firm profitability.
		will eliminate all costs assigned to the customer and may increase firm profitability.
		will always lead to an increase in firm profitability.