To design costs out of products is a goal of:
A)cost-plus pricing
B)target costing
C)kaizen costing
D)peak-load costing

Question

Quizplus · Accepted Answer

Target costing is a cost management tool used to design products that meet customer requirements while keeping costs low. It involves determining the target price for a product based on what customers are willing to pay and subtracting a desired profit margin from that price to determine the target cost. The company then works to design and produce the product at or below the target cost. This approach helps to eliminate unnecessary costs and improve overall efficiency, resulting in lower prices for customers and increased competitiveness in the market.

To Design Costs Out of Products Is a Goal Of