Dear Tutor,
If we are asked to suggest ways to reduce cost gap, then can we say that "reduce margin on selling price"? Would we be given credit for such an argument?
many thanks!
Ask the Tutor ACCA PM
target costing
5y ago#1No, you would not be given credit :-(
Reducing the cost gap means looking for ways of reducing the cost of production, because the cost gap is the difference between the target cost and the estimated actual cost.
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