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APMTarget costing and BPR

Ttaiwodarams8314y ago
Good afternoon,

Here is my question:

The use of Target costing would invariably lead to cost gap as a result of difference between estimated cost and the target cost.

Would it be reasonable to say techniques such BPR could be used to close this gap?

Thank you.
kengarrettkengarrettTutor14y ago#1
Well, a cost gap isn't inevitable. However, if actual cost is above target then BPR might bea way of closing the gap (production efficiency increased). Another way would be to simplify the product through value analysis.
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