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TECHNOLOGY MANAGMENT
Objectives
Understand how companies find and develop newproduct ideas. Learn the steps in the new-product development
process.
Know the stages of the product life cycle.
Definition
New Product Development Development of original products, product improvements, product modifications, and new brands through the firms own R & D efforts.
Acquired Patents
Product Improvements
Acquired Licenses
Product Modifications
New Brands
R & D
External idea sources: Customers, competitors, distributors, suppliers
2. Concept Testing - Test the Product Concepts with Groups of Target Customers
Packaging
Branding
Advertising Distribution
Pricing
TECHNOLOGY MANAGMENT
10- 11
When?
Where?
To Whom?
How?
Low sales High cost per customer acquired Negative profits Innovators are targeted Little competition
Standard costing
Standard costing is an important subtopic of cost accounting. Standard costs are usually associated with a manufacturing company's costs of direct material, direct labor, and manufacturing overhead. Rather than assigning the actual costs of direct material, direct labor, and manufacturing overhead to a product, many manufacturers assign the expected or standard cost. This means that a manufacturer's inventories and cost of goods sold will begin with amounts reflecting the standard costs, not the actual costs, of a product. Manufacturers, of course, still have to pay the actual costs. As a result there are almost always differences between the actual costs and the standard costs, and those differences are known as variances.
Conti
Standard costing and the related variances is a valuable management tool. If a variance arises, management becomes aware that manufacturing costs have differed from the standard (planned, expected) costs. If actual costs are greater than standard costs the variance is unfavorable. An unfavorable variance tells management that if everything else stays constant the company's actual profit will be less than planned. If actual costs are less than standard costs the variance is favorable. A favorable variance tells management that if everything else stays constant the actual profit will likely exceed the planned profit.