Target costing differs from traditional costing in all of the following ways EXCEPT:
A)target costing collects market research continually throughout the target costing process rather than as a single event.
B)target costing uses the total-life-cycle concept to minimize ownership costs.
C)traditional costing spends less time on product specification and design.
D)traditional costing uses cross-functional teams to guide the process.

Question

Quizplus · Accepted Answer

Traditional costing does not typically use cross-functional teams to guide the process; this is a characteristic of target costing, which emphasizes collaboration among different departments (e.g., marketing, engineering, manufacturing) to meet cost targets and customer needs.

Target Costing Differs from Traditional Costing in All of the Following