Target costing ensures that market feedback is brought back into the development process right from the beginning.

Question

Quizplus · Accepted Answer

Target costing involves setting a target cost for a product, based on market demand and expected selling price, and then designing the product to meet that cost target. This process involves continuous feedback from the market, allowing adjustments to be made early in the development process to ensure the product will meet customer expectations while still remaining profitable. Therefore, target costing does ensure that market feedback is brought back into the development process right from the beginning.

Target Costing Ensures That Market Feedback Is Brought Back into the Development