Target Costing Involves Not Only Cost, but Also Product Quality

question 13

True/False

Target costing involves not only cost, but also product quality and functionality.

---

Definitions:

Selling And Administrative Costs

Expenses related to the selling of products and the administrative aspects of a business, excluding production costs.

Direct Labor Costs

The expenses that a company incurs through the wages paid to workers directly involved in manufacturing goods or providing services.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs such as depreciation, utilities, and salaries for supervisors.

Manufacturing Inventories

Items held by a company for processing into finished goods, including raw materials, work-in-progress, and finished goods.