Concerns about target costing include all the following EXCEPT:
A)development time may decrease.
B)cross-functional teams may add too many features.
C)excessive pressure is put on suppliers.
D)burnout of design engineers.

Question

Quizplus · Accepted Answer

Target costing is a process of setting a cost target for a product or service and then designing the product or service to meet that target. While target costing is a useful tool for cost management, it may also have negative consequences such as putting excessive pressure on suppliers or design engineers. However, development time may decrease if the target cost is set early on in the design process and cross-functional teams may add too many features if they are not aligned with the target cost. Burnout of design engineers is also a potential concern with target costing. Therefore, A is the correct answer as it is not a concern about target costing.

Concerns About Target Costing Include All the Following EXCEPT