PLM's Managers Are Attempting to Build a New Product, a Better

Multiple Choice

PLM's managers are attempting to build a new product, a better mousetrap. They began by determining the features customers wanted and what they would pay for those features. PLM's engineers then reverse-engineered a competitor's product to understand its design and related production processes. Their analysis indicated that customers would pay $10.00 for a better mousetrap. What process did PLM use according to the preceding scenario?

A) Value chain costing
B) Target costing
C) Kaizen costing
D) Life cycle costing