In target costing,managers design a product so that the product's cost does not exceed ________.
A) the product's production costs
B) the product's nonproduction costs
C) the product's production and nonproduction costs
D) the product's target cost

Question

Quizplus · Accepted Answer

Target costing is a cost management strategy that involves designing a product or service in such a way that its cost does not exceed a predetermined target cost. As such, the aim is to set the price of the product by first determining the target cost and then subtracting the desired profit margin from it. Therefore, the correct answer is D - the product's target cost.

In Target Costing,managers Design a Product So That the Product's