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In target cost we establish, does it involve design cost like R&D or just the cost of manufacturing and selling it per unit of product?
Yes, both design costs (r&d) and manufacturing are considered.
This means controlling costs from the design stage to ensure that the total cost per unit, including design and manufacturing, meets the target cost.
Isn’t that design cost more likely to be included as part of the costing in life cycle costing?
That’s a different topic
And yes design cost would be more likely in a lifecycle question.
But that wasn’t what you asked
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