Which of the following are modern approaches to managing costs?
A) Life cycle costing
B) Target costing
C) Both life cycle costing and target costing
D) Neither life cycle costing nor target costing

Question

Quizplus · Accepted Answer

Both life cycle costing and target costing are modern approaches to managing costs. Life cycle costing involves looking at the costs of a product over its entire lifespan, from design to disposal, to identify areas where costs can be reduced. Target costing involves setting a target cost for a product and then working backwards to determine what cost reductions need to be made in order to meet that target. Both approaches are valuable in today's business environment of increasing competition and pressure to keep costs low.

Which of the Following Are Modern Approaches to Managing Costs