The selection of target price, understanding customer requirements, improving product designs and use of cross functional teams are considered as aspects of ____________?
Correct answer: C. all of above
- A. target pricing
- B. target costing
- C. all of above
- D. value engineering
Explanation
Target costing begins with the target price and customer requirements, then uses value engineering and cross-functional teams to design the product within the allowable cost. Thus the listed activities collectively describe all three concepts.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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