Question
Which of the following is a major feature of target costing? A Cost reductions are derived primarily through the increased efficiency of the production process.
Which of the following is a major feature of target costing? A Cost reductions are derived primarily through the increased efficiency of the production process.
B Making improvements to a process through small incremental amounts.
C Each division is assigned a target cost reduction ratio and this is applied to the previous year's actual costs to determine the target cost reduction.
D The cost reductions obtainable with target costing are usually bigger than those obtainable through the Kaizen costing system.
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What does functional analysis focus on? A B A Decomposing the product into its many elements or attributes. Eliminating unnecessary functions that increase the product's costs and for which customers are not prepared to pay extra. C Improving the efficiency of production processes. (D Identifying improved product designs that reduce the product's cost without sacrificing functionality.
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