Physics · Target Costing

Evaluate the following statements regarding the target cost gap and select the correct combination of True/False: 1. The target cost gap reflects whether the actual performance achieved is better or worse than the budgeted performance. 2. Techniques like value engineering, functional analysis, and reverse engineering can be used to narrow down the target cost gap. 3. An upgrade on current manufacturing technology is likely to reduce the target cost gap. 4. Revising the target price and the target profit margin to reduce the target cost gap aligns with the primary purpose of introducing target costing.