Which of the following lists the steps in the target costing process in the proper order?
A)Analyze customer needs and wants, determine the desired profit, find the target cost, and design the product
B)Design the product, analyze customer needs and wants, determine the desired profit, and find the target cost
C)Analyze customer needs and wants, find the target cost, design the product, and determine the desired profit
D)Analyze customer needs and wants, determine the desired profit, design the product, and find the target cost

Question

Quizplus · Accepted Answer

The correct sequence in the target costing process begins with understanding customer needs and wants, then determining the desired profit margin, followed by finding the target cost (which is the price point at which the product must be produced to achieve the desired profit margin), and finally designing the product to meet this cost constraint.

Which of the Following Lists the Steps in the Target