Target costing involves all of the following except:
a. determine what price customers are willing to pay for a product
b. subtract all the target margins that supply-chain members want to take off the retail price
c. arrive at a target cost by deducting target margins from the price customers are willing to pay
d. target certain business units for cost reductions
e. design and develop the product so that it meets target cost requirements
d
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Many believe that customer focus does not help to create better or new products. This belief rests on which of the following ideas?
A) Such new product developments decrease the chances of success. B) Customers do not consider the cost of design when suggesting. C) Customers are at times unaware of what they really want. D) It increases the cost of testing a product or service. E) Having too much customer focus leads to a negative brand image.
Activity slack is defined as:
A) latest start time minus earliest start time. B) earliest start time minus latest start time. C) earliest finish time minus latest finish time. D) latest finish time minus earliest start time.