Caldwell Company Desires to Enter a Market with a New

Multiple Choice

Caldwell Company desires to enter a market with a new product. As part of this process the following tasks will be performed:

● Determine a desired profit margin.
● Use Kaizen costing.
● Design and engineer the product.
● Determine the product's cost.
● Determine the suggested selling price.

Which task would Caldwell Company perform first if it plans to use target costing?

A) Determine a desired profit margin.
B) Use Kaizen costing.
C) Design and engineer the product.
D) Determine the product's cost.
E) Determine the suggested selling price.