Purchase Solution

Review of Article in www.npd-solutions.com(target costing)

Not what you're looking for?

Ask Custom Question

Go to the website of DRM Associates at http://www.npd-solutions.com/target.html. Read the article on target costing.

According to the article, when should target costing be used? What are the benefits of using target costing at that stage? Do you think this approach will work in all situations? Why or why not?

Please answer 100 words or more.

Purchase this Solution
Solution Summary

The answer contains meaning of target costing,when target costing can be used and when the target costing cannot be used

Solution Preview

Meaning of Target costing:
Target costing is the process of determining and realizing the total cost at which a proposed product with specified functionality must be produced to generate the desired profitability at its anticipated selling price per unit.
When the target costing be used?
The target costing should be used in product development phase.
What are the benefits of using target costing at this stage?
If the target costing is introduced in the product development phase, the following benefits are available:
1. It is easy for the company to control the cost. In case of traditional ...

Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

View More Free Quizzes
Related BrainMass Solutions

  • Target costing philosophy

    Thus, target cost is does pursued by the company. source: http://www.npd-solutions.com/dtc.html Target Costing recognizes that the costs of a product are established very early in the development cycle.

  • Costing, pricing

    source: http://www.npd-solutions.com/targetcons.html Costing, pricing

  • Target Costing in Japan

    %20Costing.pptx www.npd-solutions.com/target.html - www.kpitcummins.com/downloads/value-engineering-whitepaper.pdf www.mto.gov.on.ca â?

  • Target Costing, Theory of Constraints, and Strategic Pricing

    Cost accounting: Principles & Practices, © 2000Prentice Hall of India Private Limited ? http://www.npd-solutions.com/target.html. ? http://books.google.com/books?

  • Quality management

    The design review is related to product development in which the design is regularly assessed against the requirements to ensure that the present and future work is on-track. Design review helps timely and relevant product launch.

  • Roles of Leadership in Quality Management

    Implement (the rest of this article goes slightly more in-depth, but still provides and easy-to-read overview) - From http://www.apqc.org/portal/apqc/ksn?

  • Functional organizations

    Sources: http://www.npd-solutions.com/orgstructure.html www.pmforum.org/pmwt03/papers03-04more.htm Under Functional Organization, there is the standard pyramidal structure with the top management at the top and the lower management spreading out down

  • Managerial Accounting

    http://www.npd-solutions.com/qfd.html Three Dog Bite Company: Warranty claims $ 170,000 Product liability lawsuits 200,000 Rework costs 600,000 Quality training 505,000 Inspection of incoming materials 900,000 Statistical process control

  • Strategy, product structure, best practice

    http://www.npd-solutions.com/bom.html 3. Netflix became a best practice when other company compare with best practice. Please explain how, why Netflix became best practice.

View More Related Solutions