Question

Which of the following accurately describes the effect target costing has on the manufacturing design function? Select one: A. Target costing defines clear lines of responsibility among departments allowing for design engineers to be evaluated purely on meeting the customer's functional requirements. B. Target costing forces design engineers to explicitly consider the costs of manufacturing and other aspects of business that traditionally fall outside the engineering department. C. Target costing allows the design engineer's job to end once the product is designed. D. Target costing has no implications for design engineering.

Answer 1

Answer:

B. Target costing forces design engineers to explicitly consider the costs of manufacturing and other aspects of business that traditionally fall outside the engineering department

Explanation:

Target costing needs the design engineers to be active in meeting their customers projection, but it must be inside the target cost requirements. Engineers can not afford to just have their attention on the function and form of design, they must also observe cost under Target costing.