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i set a pm exam it was strange questions i couldn’t solve any of b nor C questions
however i remember that i got questions regarding target cost
the have new meal project
one of the meal information – selling price and unit quantity
second meal / selling price and unite quantity and current price . it is strange
first / they want target cost in the meal one
second /cost gap in the meal 2and they give another note that they one start any project unless the return on investment is 25 %
but they didn’t provide the investment amount
how can approach this kind of question
it is confusing what is the price and current selling price how can find cost with any margin or market value ?
I really cannot comment on the exam because I have not yet seen it
It is not appropriate to try to solve something you think it may have said in the exam as well….Thank you !
I am not think it said in the exam ?I got this question in the exam the target cost supposed to be easy compared to other but I could solve a single requirementIs it possible to explain to me what is investment return percentage? What can I use it for in target cost
Investment return percentage is also known as return on investment (ROI)
It measures the return generated from an investment relative to the cost of that investment. ROI is expressed as a percentage and is calculated by dividing the net profit or gain from the investment by the initial cost or investment amount, and then multiplying by 100.
With regards to target cost, ROI can be used to assess the performance of a company or a specific investment project.
By comparing the ROI of a new investment or project with the company’s target ROI, management can determine whether the investment is attractive and meets their financial goals.
If the ROI of the new investment exceeds the target ROI, it indicates that the investment is profitable and may be accepted.
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