Interpret the illustration about the concept of target costing. Discuss the following two (2) points and justify
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Question:
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?
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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