Target Costing Is Directed Toward

question 51

Multiple Choice

Target costing is directed toward:

• A)Increasing the activity costs associated with existing products.
• B)Identifying the amount by which the costs of existing products must be reduced to achieve a target profit margin.
• C)The creation and design of products that will provide adequate profits.
• D)The improvement of existing production processes by eliminating non-value adding activities.

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Definitions:

Process Capability

A statistical measure of a process's ability to produce output within specified limits, reflecting the inherent variability and performance of the process.

Armand Feigenbaum

An American engineer and quality expert who developed the concept of Total Quality Control.

Joseph M. Juran

A key figure in the field of quality management, known for his work on quality control and planning, quality improvement, and the Juran Trilogy.

Total Quality Management

A management approach to long-term success through customer satisfaction, where all members of an organization participate in improving processes, products, services, and culture.