Which of the following statements about target costing is not true?

Products should be discontinued if there is a target cost gap.

Products should be discontinued if there is a target cost gap For services that have a large fixed cost based, other methods of cost control may be more appropriate, such as activity based management, and a key to reducing costs is often increasing sales volumes rather than reducing expenditures. To achieve a target cost, one approach is to remove design features from a product specification that do not add value for customers (so do not affect the price that customers are willing to pay). If there is a target cost gap that cannot be eliminated, management may consider whether or not to continue with the product, since it will not be achieving the required profit margin. However, a decision to discontinue a product on whether to continue making it should not be based on target costs or profit margins alone.