Final answer:
Cost accountants use target costing to help designers understand the trade-offs in product design, aiming to meet cost and performance targets for profitability.
Step-by-step explanation:
Cost accountants utilize a variety of methods to help designers understand the trade-offs in the design of a product. One such method is c. Target costing, which is particularly useful in the design phase. This method involves setting a target cost by subtracting a desired profit margin from a competitive market price. Designers then work to create a product that meets both the performance and cost targets. Other methods mentioned, like standard costing, activity-based costing, and job order costing, are also important, but they are used at different stages of production or for different types of cost analysis.
Understanding the various costs involved in production—fixed cost, marginal cost, average total cost, and average variable cost—is critical for any firm aiming to make profit-maximizing decisions. These costs offer insights that are essential when considering the long-term cost structure and determining the optimal quantity to produce and price to charge, in alignment with market structure analysis.