Which of the following features is typically absent in target costing?
A) An approach that begins with the determination of a product or service's target cost.
B) An approach that begins with the determination of a product or service's target selling price.
C) A focus on the customer.
D) A focus on product design.
E) A focus on process design.

Question

Quizplus · Accepted Answer

Target costing typically starts with determining the target selling price of a product or service, then subtracting a desired profit margin to arrive at a target cost. It does not begin with the determination of a product's target cost.

Which of the Following Features Is Typically Absent in Target