The following are all characteristics of target costing except:
A)Understanding the pricing process in order to increase selling prices.
B)Driving costs down while satisfying customer needs.
C)Emphasizing the product's functional characteristics and their importance to the customer.
D)Reducing development time.

Question

Quizplus · Accepted Answer

Target costing is a cost management approach that involves determining the maximum cost of a product based on customer needs and market demand, and then designing the product to meet that cost target while maintaining its desired quality and functionality. While understanding the pricing process is important for companies to ensure that they price their products appropriately, it is not a characteristic of target costing. Instead, target costing emphasizes the importance of understanding customer needs and designing products that meet those needs at a price that customers are willing to pay, while also reducing costs through efficient design and production processes.

The Following Are All Characteristics of Target Costing Except