What is the primary objective of identifying a Target Cost Gap during the product development phase?

Correct answer: C) To highlight the amount of expected cost that must be reduced or eliminated (e.g., through value engineering or process improvement) before the product is launched.

Explanation

The fundamental purpose of calculating a target cost gap is to identify exactly how much cost must be stripped out of the product's design, materials, or production process to ensure the product yields the required profit margin at the competitive market price.