Question 3 Scenario: XYZ Manufacturing Company Section B XYZ Manufacturing Company is a leading player in the consumer electronics industry. The company is known for its innovative products and has recently launched a new line of smart home devices. In the highly competitive market, XYZ aims to implement target costing to ensure the profitability of its products. c. 30 Question #1: Cost Analysis and Target Cost Calculation XYZ is planning to launch a new smart speaker. The estimated market price is 150, and the desired profit margin is 20%. The company currently expects total product costs to be 130 per unit. Calculate the cost gap for the smart speaker. a. 10 b. there is no cost gap d. 120 Building a bett working world Question #2: Cost Reduction Strategy To achieve the target cost for the smart speaker, XYZ is considering cost reduction strategies. Identify two strategies that XYZ could employ to reduce the cost of production. a. Outsourcing manufacturing to a low-cost country b. Increasing the marketing budget c. Optimising product features d. Hiring more employees Question #3: Life Cycle Costing XYZ is planning to incorporate life cycle costing into its target costing strategy. Briefly explain how life cycle costing can impact the target costing process. a. Life cycle costing considers only initial costs b. Life cycle costing helps in assessing the total cost of a product throughout its life c. Target costing is not affected by life cycle costing d. Life cycle costing is only relevant for service industries Question #4: Customer Value and Target Costing Explain how understanding customer value can influence the target costing process at XYZ Manufacturing Company. a. Customer value is irrelevant to target costing Page 12 of