Which of the Following Accurately Describes the Effect Target Costing

question 39

Multiple Choice

Which of the following accurately describes the effect target costing has on the manufacturing design function?

• A)Target costing allows the design engineer's job to end once the product is designed.
• B)Target costing forces design engineers to explicitly consider the costs of manufacturing and other aspects of business that traditionally fall outside the engineering department.
• C)Target costing defines clear lines of responsibility among departments allowing for design engineers to be evaluated purely on meeting the customer's functional requirements.
• D)Target costing has no implications for design engineering.

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Definitions:

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