Which of the following statements is typically not true about target costing?
A) Target costing focuses on the price the customer will be willing to pay for a product or service
B) After removing a reasonable profit from the price, the target cost is identified
C) Calculation of the target cost enables designers to focus on meeting the needs of the customer within the target cost constraint
D) Supply professionals can apply target costing to analyses of supplier's products and services
E) Target costing requires ABC

Question

Quizplus · Accepted Answer

Target costing does not require activity-based costing (ABC), although it may use ABC as a tool to identify cost drivers and allocate costs.

Which of the Following Statements Is Typically Not True About