In order to reduce costs so as to reach the desired target cost,Quality Industries should also focus on reducing the cost of:
A)Direct materials
B)Direct labor
C)Machine setups
D)Mechanical assembly
Materials,labor and setups are all under budget;mechanical assembly is over budget.

Question

Quizplus · Accepted Answer

Mechanical assembly is the only cost that is over budget, so focusing on reducing its cost would help to reach the desired target cost. The other options are already within budget, so reducing their cost further may not be necessary or feasible.

In Order to Reduce Costs So as to Reach the Desired