Place the Five Steps in Implementing a Target Costing Approach

question 60

Multiple Choice

Place the five steps in implementing a target costing approach in the proper order:
1 - Determine desired profit
2 - Use kaizen costing and operational control to reduce costs
3 - Determine the market price
4 - Use value engineering to identify ways to reduce product costs
5 - Calculate the target cost at market price less desired profit

• A) 3,2,1,4,5.
• B) 2,5,4,1,3.
• C) 4,5,1,3,2.
• D) 3,1,5,4,2.
• E) 5,3,2,1,4.

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