Target costing can be used most effectively in the design and development stage of the product life cycle.

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Target costing is a cost management tool that aims to reduce costs by designing products that can be produced within a predetermined cost limit. This approach is most effective in the design and development stage of the product life cycle because it allows designers and engineers to consider the cost implications of various design options and make informed decisions that optimize both cost and performance. By using target costing early in the product life cycle, companies can create products that are competitive in the marketplace while maximizing profitability.

Target Costing Can Be Used Most Effectively in the Design