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Target costing

This topic has 2 replies, 2 voices, and was last updated 7 years ago by Cath.

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February 21, 2018 at 6:09 am #438173
vgca
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Does target price ensure recovery of development costs ???? Pls explain nd if not then why
February 22, 2018 at 6:36 am #438293
vgca
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plz answer
February 22, 2018 at 11:56 am #438356
Cath
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Hello!
No target costing doesn’t try to recoup the development costs. These would be sunk and not relevant to the cost per unit target.
Its more lifecycle costing that includes past/ present and future costs as part of the analysis
I hope that explains ok?
Kind Regards
Cath
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