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Bar Chart and target costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Bar Chart and target costing

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • September 28, 2022 at 12:06 am #667439
    teshwar
    Participant
    • Topics: 46
    • Replies: 30
    • ☆☆

    Sir John

    1. What is difference between Compound bar chart and composite bar chart?

    2. What advantages of target costing?

    September 28, 2022 at 8:03 am #667461
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54752
    • ☆☆☆☆☆

    1. Composite bard charts are also called component bar charts, and the difference between these and compound bar charts it explained in my free lectures working through Chapter 3 of our free lectures notes.

    2. Tradition costing lets the cost determine the selling price, but that may mean that the selling price will be so high that customers will not buy. With target costing we determine what a reasonable selling price is first, and let this determine the maximum cost we can afford. This is again explained in my free lectures.

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