Place the following steps for the implementation of target costing for a product in order:
A = Derive a target cost
B = Develop a target selling price
C = Perform value engineering
D = Determine target profit margin
A)B D A C
B)B A D C
C)A D B C
D)A B C D

Question

Place the following steps for the implementation of target costing for a product in order: 
A = Derive a target cost
B = Develop a target selling price
C = Perform value engineering
D = Determine target profit margin
A)B D A C
B)B A D C
C)A D B C
D)A B C D

Quizplus · Accepted Answer

The correct sequence for implementing target costing starts with developing a target selling price (B), then determining the target profit margin (D), deriving a target cost (A), and finally performing value engineering (C) to achieve the target cost.

Place the Following Steps for the Implementation of Target Costing