Asked by Mitch Carpenter on Jun 27, 2024
Verified
The target costing approach was developed in recognition of two important characteristics of markets and costs. First, many companies have less control over price than they like to think. Second, most of a product's cost is determined when it is designed.
Target Costing
A pricing strategy where the selling price of a product is determined first, and then the manufacturing cost is managed to meet that target price.
Price Control
Government or company policies aimed at regulating or setting prices for goods and services in a market.
- Understand the fundamentals of target costing and its significance in determining selling prices.
Verified Answer
GB
gizeal bahatiJun 28, 2024
Final Answer :
True
Explanation :
The statement correctly describes the two important characteristics of markets and costs that led to the development of the target costing approach.
Learning Objectives
- Understand the fundamentals of target costing and its significance in determining selling prices.