One of the advantages of target costing is that it specifically considers the probable market price for the product.

Question

Quizplus · Accepted Answer

Target costing is a cost management approach that starts with the price at which a product is likely to sell and then works backwards to determine the maximum cost that can be incurred to make a profit at that price. Therefore, one of the advantages of target costing is that it takes into account the probable market price for the product, making it more likely that the product will be priced competitively in the market.

One of the Advantages of Target Costing Is That It