Interpret the illustration about the concept of target costing. Discuss the following two (2) points and justify your answers:

1. Tactic to follow if the market price rises. Would the profit margin go up or would the target cost go up? 2. Tactic when the market price goes down. Would you lower the profit margin or implement controls to further reduce the target cost?

Answer rating: 100% (QA)

Answer The illustration depicts the concept of target costing which is a cost management strategy used in product development Target costing focuses o... View the full answer