The Five Tasks That Follow Take Place with the Concept

Multiple Choice

The five tasks that follow take place with the concept known as target costing:

● Use value engineering to identify ways to reduce product cost.
● Determine the market price.
● Determine the desired profit.
● Use kaizen costing and operational control to reduce costs.
● Calculate the target cost at market price less desired profit.

Which of the following choices depicts the correct sequence of these tasks?

A) 1, 2, 3, 4, 5
B) 2, 3, 5, 1, 4
C) 3, 2, 5, 4, 1
D) 3, 2, 5, 1, 4
E) 5, 3, 2, 4, 1