Which of the following statements is NOT consistent with target costing?
A) The target cost is the anticipated selling price less the desired profit.
B) The technique is most useful in the manufacturing stage of a product.
C) Effective target costing is an integral part of continuous improvement (Kaizen costing) as a management philosophy.
D) In target costing, the anticipated selling price of a product determines the maximum allowable cost for the product.

Question

Quizplus · Accepted Answer

Target costing is most effective during the design stage of a product, not just the manufacturing stage.

Which of the Following Statements Is NOT Consistent with Target