Data for a Factory -
Target Costing Is a Management Accounting Technique with the

question 18

Multiple Choice

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$

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Target costing is a management accounting technique with the following important supply chain implications:

• A)Progressive cost cuts are required from suppliers
• B)External sourcing influenced by cost and design specifications set by the market
• C)Sharing of cost and output data enables benefits of partnership sourcing
• D)Competition between supply chains rather than individual firms

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Definitions:

Attitudes And Behaviors

Refers to the relationship between how individuals think and feel about various topics, objects, or individuals and how this affects their actions or reactions in various situations.

Effort Justification

The phenomenon where people attribute greater value to outcomes they had to put effort into achieving.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Psychological Discomfort

Describes a state of emotional unease or distress often triggered by stressful situations, conflicts, or challenging thoughts and beliefs.