Relevant costs for target costing include:
A)variable manufacturing costs.
B)variable manufacturing and variable nonmanufacturing costs.
C)all fixed costs.
D)all future costs,both variable and fixed.

Question

Quizplus · Accepted Answer

Target costing involves considering all future costs, both variable and fixed, to determine the cost at which a product must be produced to achieve a desired profit margin at its anticipated selling price. This approach is comprehensive and includes all types of costs that will be incurred.

Relevant Costs for Target Costing Include