In a competitive environment,the use of target costing enables managers to analyze a product's potential before committing resources to its production.

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Target costing is a strategic cost management tool that helps managers predict the profitability of a product before it is manufactured. It involves setting a target cost based on the price at which the product is expected to sell in the market, and then determining the maximum allowable cost of production to achieve that target. By using target costing, managers can identify potential cost savings, evaluate design alternatives and make informed decisions about whether to proceed with the production of the product. This enables them to remain competitive by producing high-quality products at a lower cost than their rivals.

In a Competitive Environment,the Use of Target Costing Enables Managers