customers some price-competitive, yet fashionable items with an edge. Market growth has also been affected by young consumers in their 20s and 30s. Known as the "want-it-all" generation, they tend to buy cloths frequently to keep up with fast-changing fashion trends. Under their "fast-fashion" system, they provide customers with new products on a weekly basis and in limited amounts. Experts say t
customer service, route, flight schedules, models of aircraft, safety records, reputation of brands, promotion and facilities in aircraft things like that.
Since 2001, many regional airlines have faced significant financial restructuring, including bankruptcies, mergers and consolidations. These processes caused lower cost structure by reducing operating costs, including labor costs, debt terms
that actual costs do not exceed this target cost.
This is the reverse of the way most companies have traditionally approached the pricing decision. Most companies start with their full cost and then add their markup to arrive at the selling price. In contrast to target costing, this traditional approach ignores how much customers are willing to pay for the product.
. Exercise A-1 (30 minutes)