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Target Costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Target Costing

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • May 17, 2021 at 2:53 am #620780
    Sourav9271
    Participant
    • Topics: 170
    • Replies: 120
    • ☆☆☆

    Which TWO of the following would be benefits of introducing a target costing approach?
    ? Edward Co will have a greater internal focus on its product development.
    ? Cost control can begin at the design stage.
    ? Edward Co will be able to pass on cost increases to its customers.
    ? The radio will only include features that the customer regards as valuable.

    Sir isn’t except 3 all right?
    The answer was 2 ans 4 which I do agree with.
    But isn’t 1st too right?

    May 17, 2021 at 8:34 am #620799
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    No. It is because although there is an aspect of product development involved, the focus is on reducing costs and there is an external factor which is the expected selling price.

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