All of the following are true regarding target costing EXCEPT that:
A)improvements are implemented in small, incremental amounts.
B)customer input is collected continually throughout the target costing process.
C)input is requested from suppliers and distributors.
D)a key goal is to minimize ownership costs over the product's useful life.

Question

Quizplus · Accepted Answer

Improvements are not necessarily implemented in small, incremental amounts in target costing. The focus is on setting a target cost based on customer needs and then working to achieve that cost while still providing the desired level of quality and features. The approach to implementing improvements can vary depending on the specific product and situation.

All of the Following Are True Regarding Target Costing EXCEPT