Two Potential Outcomes when Using Target Costing
Actual cost less than target total costActual cost greater than target total costOther Strategies:-Increase sales–Use CVP analysis to compute target sales to achieve its target profit -Change or add to its product mix-Offer levels of the same product -Offer new items to the product mix with high CM-Remove items with the lowest CM -Differentiate its products—(make it unique)-Branding-Quality-Service packs