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I couldn’t understand section 4(d) of this question.
Discuss three of the particular difficulties that the Sickham UHS trust may find in using target costing in its service provision.
Can u explain a bit sir?? I am really struggling 🙁
In ur note there is no discussion about the relevance of target costing in service industries.I have no other tutor to provide me advise.I am a full time opentuition student,that’s why I always relies on you and I like ur assistance and types of work u r providing free of cost to millions.The notes do list the difficulties in using target costing in service industries at the end of the chapter on target costing, and the free lectures does expand on these and explain (you should not use the notes without watching the lectures).
The problem is things such as when it is a manufacturing industry then they are making lots of identical units – so the target cost is the same for all of them. However, when it is a service industry there is unlikely to be just one standard service – think about a dentist. One thing they do it fillings, but the time and cost of doing a filling will be different for different patients.
Do learn from the examiners answers to this sort of question – the examiner (obviously) write ‘perfect’ answers, and they are good to learn from.
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