The last step in the target costing for target pricing approach is
A) calculating a target cost per unit.
B) setting the unit selling price by using the prevailing market price per unit as a price ceiling.
C) performing value engineering to achieve the target cost per unit.
D) applying cost analysis to determine which parts of the service/product cost can be targeted for reduction or control.

Question

Quizplus · Accepted Answer

The last step in target costing is performing value engineering to achieve the target cost per unit, ensuring the product can be produced at the desired cost while maintaining quality and functionality.

The Last Step in the Target Costing for Target Pricing