Which of the following are features of target costing?
1) It attempts to ensure a zero level of product defects.
2) It sets a maximum cost so as to achieve a desired profit margin at a competitive market price.
3) Its greatest impact is at the design stage of a product’s life cycle.
Sir why is the answer 1 and 3?
Shouldnt the answer be 2 only?
Target costing is the cost subtracted from desired profit margin?
I have watched your free lectures
Ask the Tutor ACCA MA
Target costing
5y ago#1The answer is (2). Are you sure that the question does not say which of the following are NOT features? If the question is as you have typed, then it seems there is a typing error in your book.
This topic is locked — no new replies.