Explain How Target Costing Differs From Traditional Cost Reduction Methods
To compete effectively organizations must continually redesign their. An organization will be profitable when the created value is greater than the costs of production and service supply. Target Costing Key Features Advantages And Examples The management can determine the desired profit margin. . Under traditional cost reduction after market research to determine customer requirements and product specification engineers and designers. Under traditional cost reduction after market research to determine customer requirements and product specification engineers and designers determine product design then the cost to produce the product. Features of Target Costing. Target costing is the method which company sets the production cost by deducting profit margin from the target selling price. Target cost means an estimation of total cost to win in the competition in terms of quality cost and productivity. Explain how target costin
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