Which of the following is one of the advantages to the target costing approach?
A) In the target costing approach,costs are fully known before the product is actually designed.
B) There is usually a higher level of cost-consciousness in the target costing approach than in the cost plus approach.
C) The target costing approach approach often leads to higher levels of features included that some customers may want.
D) The target costing approach can be completed by marketing department personnel without involving others in the process.

Question

Quizplus · Accepted Answer

In the target costing approach, there is usually a higher level of cost-consciousness as cost targets are set before the product design stage. This encourages a more collaborative approach across departments to ensure that the product meets the target cost while still meeting customer needs. Option A is incorrect as costs are estimated, not fully known before design, and options C and D are incorrect as they do not reflect the advantages of target costing.

Which of the Following Is One of the Advantages to the Target