Target costing is a:
A) Pricing method based on variable cost
B) Decision-making technique for deciding whether to produce a product
C) Pricing method based on total cost
D) Technique for costing inventory for financial statements

Question

Quizplus · Accepted Answer

Target costing is a decision-making technique used to determine the cost at which a product must be produced to generate the desired profit margin at its anticipated selling price, rather than a direct pricing method or a technique for costing inventory.

Target Costing Is A