Which of the following is true of target costing?
A) In target costing, all future costs are considered for long-run pricing.
B) In target costing, cost is the starting point for determining the price of the product.
C) In target costing, input from suppliers and distributors are not relevant.
D) In target costing, a key goal is to minimize value added activities of a product.

Question

Quizplus · Accepted Answer

Target costing involves considering all future costs to ensure the product can be produced at a cost that allows for a competitive market price.

Which of the Following Is True of Target Costing