Which of the following steps occurs first in a target costing design cycle?
A) Make product design choices to achieve the target cost.
B) Determine the target cost.
C) Evaluate feasibility using a pilot project.
D) Determine product target price, quality, and functionality.

Question

Quizplus · Accepted Answer

Determining the product target price, quality, and functionality is the first step in a target costing design cycle, as these factors are essential for setting the target cost and guiding subsequent design and production decisions.

Which of the Following Steps Occurs First in a Target