The target costing process for a new product
A)starts with the features that customers want and the price customers are willing to pay.
B)is applied after the product has been designed.
C)focuses on creating products that include all possible product features to broaden the company's market share.
D)adds a markup percentage for profit once the price of the product has been determined.

Question

Quizplus · Accepted Answer

The target costing process for a new product starts with identifying the features that customers want and the price they are willing to pay. The company then works to design and produce the product within that cost constraint.

The Target Costing Process for a New Product