A cost management technique that helps managers set goals for cost reductions through product design is called:
A) cost-plus pricing.
B) full costing.
C) target costing.
D) design efficiency pricing.

Question

Quizplus · Accepted Answer

Target costing is a cost management technique that involves setting a target cost for a product by subtracting a desired profit margin from a competitive market price, and then designing the product to meet that cost.

A Cost Management Technique That Helps Managers Set Goals for Cost