Target costing is directed toward:
A)Increasing the activity costs associated with existing products.
B)Identifying the amount by which the costs of existing products must be reduced to achieve a target profit margin.
C)The creation and design of products that will provide adequate profits.
D)The improvement of existing production processes by eliminating non-value adding activities.

Question

Quizplus · Accepted Answer

Target costing is a cost management technique that focuses on the creation and design of products that will provide adequate profits.

Target Costing Is Directed Toward