Archive | Target Costing

Examples of Target Costing | Cost Accounting

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 [...]

By |2018-05-16T07:31:19+00:00May 16, 2018|Target Costing|Comments Off on Examples of Target Costing | Cost Accounting

Target Costing

Target costing is a structural approach to determine the cost at which a proposed product with specified function and quality must be produced, to generate a desired level of profitability at its anticipated selling price. In other words, Target Costing is a cost management tool for producing overall cost of product over its entire life cycle with the help of [...]

By |2021-01-04T10:14:57+00:00June 18, 2016|Target Costing|Comments Off on Target Costing

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 a running series of cost [...]

By |2016-06-18T06:59:43+00:00June 18, 2016|Target Costing|Comments Off on Role of Cost Accountant in Target Costing Environment
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