The four tasks that follow take place with the concept known as target costing:
1-Value engineering.
2-Establish a target selling price.
3-Establish a target cost.
4-Establish a target profit.
Which of the following choices depicts the correct sequence of these tasks?
A) 1, 3, 4, 2.
B) 3, 1, 4, 2.
C) 2, 4, 3, 1.
D) 2, 3, 1, 4.
E) Some other sequence not listed.

Question

Quizplus · Accepted Answer

The correct sequence for tasks in target costing starts with establishing a target selling price, then determining the target profit, followed by establishing a target cost, and finally, value engineering to achieve the target cost.

The Four Tasks That Follow Take Place with the Concept