Académique Documents
Professionnel Documents
Culture Documents
Accountant
Emerging Applications
Developed Strategic
Cost
Mgt Applications
Activity Based Methods
Target Costing
Capacity Mgt
Asset Mgt
Process Mgt
Extended Enterprise
Lean Enterprise
Theory of Constraints
Draft
Strategic Tools for Management
Accounting
Rs
Rs
Target Costing
Present
Future
Target Costing
Price led
costing
Life-cycle
costs
Focus on
process
design
Crossfunctional
teams
Key
principles
of target
costing
Focus
on the
customer
Value-chain
orientation
Focus on
product
design
Market Share
Objective
Select segment to
compete,
e.g.
luxury or economy
goods
Includes all
product & period
cost to make &
market the product
Product
Functionality
Market
research
determines
price
at which a new
product will sell.
Customer
willing
to pay (supply &
(Target
S.P-Desired
demand)
Profit )
Management
computes
a manufacturing
cost that
will provide an
acceptable
profit margin
based
on target
Redesign
price
product and
techniques to
achieve target.
(continuous
improvement)
TARGET COSTING-CUSTOMER
REQUIREMENTS
UNDERSTANDING CUSTOMER
REQUIREMENTS BY GATHERING MARKET
INFORMATION RELATING TO CUSTOMER
EXPECTATIONS ABOUT:
-PRICE
-QUALITY
-DELIVERY
-SERVICE
-TECHNOLOGY&
PRODUCT PERFORMANCE
Promotion
Place/Reach
Process