Which of the following accurately describes the effect target costing has on the manufacturing design function?
A)Target costing allows the design engineer's job to end once the product is designed.
B)Target costing forces design engineers to explicitly consider the costs of manufacturing and other aspects of business that traditionally fall outside the engineering department.
C)Target costing defines clear lines of responsibility among departments allowing for design engineers to be evaluated purely on meeting the customer's functional requirements.
D)Target costing has no implications for design engineering.

Question

Quizplus · Accepted Answer

Target costing encourages design engineers to consider the costs of manufacturing and other aspects of the business that are traditionally outside the engineering department, making it easier for them to work with other departments to ensure that costs are kept within the target range.

Which of the Following Accurately Describes the Effect Target Costing