Companies using target costing ________.
A) first design a new product and then determine its cost
B) tailor their products to be in line with the marketing mix
C) routinely neglect customer value considerations
D) avoid determining an ideal selling price until analyzing test market results
E) start with an ideal selling price and then target costs that will ensure that the price is met

Question

Quizplus · Accepted Answer

Companies using target costing start with an ideal selling price and then target costs that will ensure that the price is met. This approach involves considering customer value and designing the product to meet that value at a profitable price point.

Companies Using Target Costing ________