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Target costing philosophy –

by | Dec 1, 2023 | Posted Questions

Target costing philosophy

Quote from a senior manager of a major company: “Our
firm has always had a design to cost philosophy.

Our engineers have to achieve very tight cost standards when
designing new products. Target costing is just the new fashionable term for
something we have done all along.”

Do you agree with this statement? Has the firm been
practicing target costing? Explain your reasoning.
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