Target costing is particularly effective for products with well-defined and discrete features because it helps in making proper tradeoffs among price, quality and functionality with respect to each product feature.

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Target costing involves setting a target cost for a product based on its value to customers and then designing the product to meet that cost. This approach is most effective for products with well-defined and discrete features because it allows for proper tradeoffs among price, quality, and functionality for each feature.

Target Costing Is Particularly Effective for Products with Well-Defined and Discrete