CH8 - Total-Life-Cycle Costing

Thursday, June 27, 2013

2:31 PM

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Refer to Page 306-307

 

Target cost results from a given estimated selling price and profit

Vs

Profit (or selling price) results from a given estimated cost and selling price (or profit)

 

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Concept is simple => Cost s/b = importance (relative

 Therefor increase or decrease as necessary

 

Value Engineering - key activity within target costing.

1. Identify components for cost reduction

 

 

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