Which of the Following Is a Disadvantage of Using Target

question 200

Multiple Choice

Which of the following is a disadvantage of using target costing?

• A) It may lead to an increase in all the non-value added cost of the product
• B) It may lead to a product being in development stage for a long time as the team repeatedly evaluates alternative designs.
• C) It may lead to increased employee participation in the cost reduction process of the organization thereby making it impossible to co-ordinate the process.
• D) It eliminates creativity in the manufacturing process as the focus is always on cost reduction and cost elimination.

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Definitions:

Abrasion

The process of wearing down or rubbing away materials through mechanical action, often seen in geological contexts.

Scraping

the process of removing material from a surface using a hard edge or object.

Gouging

The process of making grooves or marks in a surface, often related to glacial activity in geological contexts.

Cirque

An open-sided, bowl-shaped depression formed in a mountain, commonly at the head of a glacial valley; produced by erosion of a glacier.