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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › target costing
” 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?
‘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.
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.
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.