Task 4

Question 1

Evaluate using target costing principles

Answer 1

-Will the business be able to reach their desired profit margin?
-Should the business produce this product?
-How could you reduce the cost of this product?
-Hoe much does the business need to reduce the cost by?

Question 2

Value analysis characteristics

Answer 2

-Cost value
-Exchange value
-Use value
-Esteem value
Maintaining the same level of quality but trying to reduce the cost so it doesn’t affect the end consumer.