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target costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › target costing

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 2, 2017 at 9:51 am #414113
    adarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    ” Cost control can begin at the design stage.”

    1.Could you explain how this statement is true?
    Isn’t target costing a cost reducing technique rather than a cost control one?

    November 2, 2017 at 4:11 pm #414143
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54723
    • ☆☆☆☆☆

    ‘controlling’ costs doesn’t only mean stopping them getting bigger. It also means keeping them to a minimum, and it is important that this happens at the design stage.

    November 2, 2017 at 4:43 pm #414151
    adarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    https://opentuition.com/topic/target-costing-36/

    Please refer to that previous post.
    – From your explanation in that post, it seemed that Target costing is not a cost control technique.

    -Please make it clear for me.

    November 3, 2017 at 9:59 am #414193
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54723
    • ☆☆☆☆☆

    There is a difference between wanting to control costs right from the design stage to having a specific technique to control costs. Target costing itself is not a technique to control costs.

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    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘target costing’ is closed to new replies.

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