Target costing is a comprehensive approach to profit planning and cost management.

Question

Quizplus · Accepted Answer

Target costing is a method used for managing costs while also ensuring that a product is priced within a certain range that will provide a desired level of profit. In other words, it is a proactive approach to cost management that involves determining a target cost for a product early in the design process and then working to achieve that cost through careful product design and value engineering. Therefore, the statement that "target costing is a comprehensive approach to profit planning and cost management" is true.

Target Costing Is a Comprehensive Approach to Profit Planning and Cost