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    This post addresses implementing the target costing approach

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    To implement target costing for a new product, companies often set up a cross-functional team with members from engineering, marketing, and costing accounting. Why is a cross-functional team desirable when implementing the target costing approach?

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    Each person on this team has a specific function related directly to the product because the company is using target costing, and the formation of the team involving these three people is crucial. The engineer needs to make sure that the product will be put through the most efficient, ...

    Solution Summary

    This solution explains why a cross-functional team is desirable when implementing the target costing approach.