The following points highlight the two main examples of target costing. The examples are: 1. Tata Rs 0.1-Million Car 2. Tata Rs 0.1-Million Car- Potential Competition. Example # 1. Tata Rs 0.1-Million Car: On 11 March 2003 Business Standard reported the following: Ratan Tata, chairman of India's second-largest and longest-established conglomerate, said, he is pressing ahead with a project to [...]
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 a running series of cost [...]
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 customer's needs. This will be [...]