Which of the following steps occurs first in a target costing design cycle?
A) Evaluate feasibility using a pilot project
B) Make product design choices to achieve the target cost
C) Determine the target cost
D) Determine product target price, quality, and functionality

Question

Quizplus · Accepted Answer

Determining the product target price, quality, and functionality is the first step in a target costing design cycle, as it sets the foundation for defining the target cost and subsequent design and production decisions.

Which of the Following Steps Occurs First in a Target