Marketing plays a limited role in target costing.

Question

Quizplus · Accepted Answer

Marketing plays a significant role in target costing as it helps to identify customer needs and preferences, determine target prices, and communicate the value proposition of the product to customers. Marketing research also provides critical information on competitors' pricing strategies and customer behavior, which can inform the target cost of a product. Therefore, marketing must work closely with cross-functional teams to ensure that the target cost aligns with customer requirements, competitive pressures, and the company's strategic goals.

Marketing Plays a Limited Role in Target Costing