In target costing, managers can:
A) Push some cost reductions to suppliers
B) Try to establish their product as a commodity
C) Focus on motivating customers to pay a higher price
D) Justify higher costs by making production processes more complex

Question

Quizplus · Accepted Answer

Target costing often involves pushing some cost reductions to suppliers to meet cost objectives, as it focuses on managing costs with the aim of meeting market conditions by determining the desired profit margin and target cost beforehand.

In Target Costing, Managers Can