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i was just thinking the exact same thing.
All’s i know is that you work backwards – find out how much customers are willing to pay then deduct the required profit
this then gives you a target cost.How are you finding P5?
i was just thinking the exact same thing.
All’s i know is that you work backwards – find out how much customers are willing to pay then deduct the required profit
this then gives you a target cost.
How are you finding P5?It is a simple technique that fits well with the concept of performance management. If competition means selling prices can’t be increased the only way to improve performance is to control costs ie aim for a target cost.
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