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

Question

Quizplus · Accepted Answer

Target costing does not necessarily involve implementing improvements in small incremental amounts; it focuses on setting a target cost based on market conditions and customer expectations, and then designing the product to meet that cost.

All of the Following Are True Regarding Target Costing EXCEPT