Archive | Target Costing

Difference between Traditional Costing and Target Costing

The upcoming discussion will update you about the difference between traditional costing and target costing. Traditionally, manufacturers would make use of the cost-plus approach to estimate the product price. A starting point for them would be to conduct market research to determine its market segment’s preferences and hence its product’s characteristics that will meet the […]

7 Main Features of Target Costing Process

The following points highlight the seven main features of target costing. 1. Target Costing is viewed as an integral part of the design and introduction of new products. As such, it is part of an overall profit management process, rather than simply a tool for cost reduction and cost management. The first part of the […]

Target Costing: Definition, Objectives and Advantages

In this article we will discuss about Target Costing:- 1. Origin of Target Costing 2. Definition of Target Costing 3. Steps 4. Objectives 5. Process 6. Advantages 7. Reasons for the Late Development 8. Problems. Contents: Origin of Target Costing Definition of Target Costing Steps in Target Costing Objectives of Target Costing Target Costing Process […]

Role of Cost Accountant in Target Costing Environment

In this article we will discuss about the role of cost accountant in target costing environment. Given the strong orientation in a target costing environment, there is obviously a considerable role for the cost accountant on a design team. The cost accountant should be able to provide for the other members of the design team […]

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