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

Question

Quizplus · Accepted Answer

The correct sequence for implementing target costing is: Develop a target price (B), Determine target operating profit (D), Derive a target cost (A), and Perform value engineering (C). This reflects the process of setting a price based on market conditions, subtracting a desired profit margin to determine a cost target, and then engineering the product to meet this cost.

Place the Following Steps for the Implementation of Target Costing