11.In the target costing process, target price is computed by adding the desired profit margin to the target product cost.
12.Target cost equals target price plus profit margin.
13.The target costing process begins with finding a low cost supplier to reduce the overall cost of production.
14.To arrive at a target cost, the target selling price and a satisfactory profit margin are added together.
15.A primary objective of target costing is to reduce development time.
16.A just-in-time manufacturing system is also known as a supply push system.
17.Just-in-time inventory systems are characterized by extremely large inventories of materials, work in process, and finished goods.
18.In a just-in-time manufacturing system, reliable vendor relationships are essential only if the prices they charge are the lowest possible prices.
19.A just-in-time inventory system is dependent on reliability of equipment and production workers are often trained in how to make routine repairs.
20.Cycle time is the length of time required for a product to pass completely through a manufacturing process.