Which of the following is a benefit of the target costing approach?

Question

Quizplus · Accepted Answer

Target costing approach involves setting a target cost for a product and then designing and developing the product such that it can be produced at the target cost, while also meeting customer needs and providing value. This approach helps to avoid introducing low-margin products by focusing on cost from the outset of the product development process, thereby ensuring that the product's costs are aligned with the desired profit margins.

Which of the Following Is a Benefit of the Target