Which of the following strategies would be immediately acceptable methods to reduce an identified cost gap?
A、Reduce the desired margin without discussion with business owners
B、Reduce the predicted selling price
C、Source similar quality materials from another supplier at reduced cost
D、Increase the predicted selling price
A、Reduce the desired margin without discussion with business owners
B、Reduce the predicted selling price
C、Source similar quality materials from another supplier at reduced cost
D、Increase the predicted selling price
【参考答案及解析】
To reduce the acceptable margin would normally require agreement from the owners and altering selling prices in any direction is not valid as the start point of target costing is to find a competing product’s price, this cannot be changed.
To reduce the acceptable margin would normally require agreement from the owners and altering selling prices in any direction is not valid as the start point of target costing is to find a competing product’s price, this cannot be changed.