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Hi SIr
Kaplan Q202 Helot Co Sub q 1
“Customer requirements for quality, cost and timescales are more likely to be
included in decisions on product development.” I believe dis statement is correct and the answer behind says the above statement is correct but given final asnser as Option D.CAn u please help ?
Sorry, but I do not have the Kaplan book (only the BPP Revision Kit) and so I do not know what the question asked for, or what option D is.
Hi Sir this is the Q.
what were the benefits were of adopting a target costing approach
so early in the game’s life-cycle?
(1) Costs will be split into material, system, and delivery and disposal categories
for improved cost reduction analysis.
(2) Customer requirements for quality, cost and timescales are more likely to be
included in decisions on product development.
(3) Its key concept is based on how to turn material into sales as quickly as
possible in order to maximise net cash.
(4) The company will focus on designing out costs prior to production, rather than
cost control during live production.
A (1), (2) and (4)
B (2), (3) and (4)
C (1) and (3)
D (4) only(2) is nearly right, but target costing does not incorporate time scales (and doesn’t directly include quality).
In addition, since (4) is definitely correct, and (1) and (3) are definitely not correct, then the only possible correct answer is D (and thinking that way is vital for the exam, because nearly always one answer is correct but another answer is nearly correct but not quite!!).
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