Which of the following are contemporary approaches to managing costs?
A) Life cycle costing
B) Target costing
C) Both life cycle costing and target costing
D) Neither life cycle costing nor target costing

Question

Quizplus · Accepted Answer

Both life cycle costing and target costing are contemporary approaches to managing costs. Life cycle costing involves considering the total cost of a product or service over its entire lifetime, including development, production, use, and disposal. Target costing involves setting a target cost for a product or service based on market demand and competitor pricing, and then working backwards to determine the necessary cost reductions in order to achieve that target. Both approaches are widely used in modern cost management strategies.

Which of the Following Are Contemporary Approaches to Managing Costs