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Sir the correct answer is 2,4 but how does service being consumed simultaneously when it’s produced an impediment to use target costing.
How does simultaneity feature relates to difficulty in using target costing..Also, I wanted to know that isn’t complexity in production favourable condition for implementing target costing since we can close cost gap by easing the production?
It would seem that you are not watching my free lectures where I explain the problems with using target costing in a service industry!
Simultaneity makes it more difficult to measure the costs involved because when goods are produced costs can be measured before the goods are delivered to the customer.
With production, one way of reducing the costs may be to change the methods of production. It is not so easy with, for example a dentist’s work, to change the way the work is done.
Okay sir,
No I did watched all your lectures. I couldn’t recall it I will indeed revisits the lectures.
Thanks in general.
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