Target costing is difficult to be used in service industries right. Is it only due to Heterogeneity and Intangibility or other things like simultaneity and perishability also.. ? I cant relate why target costing will be difficult due to simultaneity and perishability
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service industries
7y ago#1Although you are expected to know the five major characteristics that distinguish service business from manufacturing industries, if the exam asks you why it is difficult to use target costing in a service business then that is due to heterogeneity and intangibility.
so other factors are not relevant to target costing ?
7y ago#3Not directly - no.
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