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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Target Costing
Which TWO of the following would be benefits of introducing a target costing approach?
? Edward Co will have a greater internal focus on its product development.
? Cost control can begin at the design stage.
? Edward Co will be able to pass on cost increases to its customers.
? The radio will only include features that the customer regards as valuable.
Sir isn’t except 3 all right?
The answer was 2 ans 4 which I do agree with.
But isn’t 1st too right?
No. It is because although there is an aspect of product development involved, the focus is on reducing costs and there is an external factor which is the expected selling price.