Question:Which two of the following methods should be used to move a currently-attainable cost closer to target cost?
A. Using standard components wherever possible.
B. Acquiring new, more efficient technology.
C. Making staff redundant.
D. Reducing the quality of the product in question.
The correct answers are: Using standard components wherever possible; Acquiring new, more efficient technology.
解析To make improvements towards the target cost, technologies and processes must be improved.
The use of standard components is a way of improving the production process.
Redundancy creates short-term costs such a redundancy pay-offs, may affect the long-term morale of the group and, if it leads to the organisation being under resourced, may affect the quality of the product and customer service.
Reducing the quality may lead to a loss of business and competitiveness.