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

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