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)2, 1, 3, 4

Question

Quizplus · Accepted Answer

The correct sequence in target costing is to first establish a target selling price, then establish a target profit, followed by establishing a target cost, and finally perform value engineering.

The Four Tasks That Follow Take Place with the Concept