Explore BrainMass
Share

Target costing methodology

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

A new product is being designed by an engineering team at Golem Security. Several managers and employees from the cost accounting department and the marketing department are also on the team to evaluate the product and determine the cost using a target costing methodology. An analysis of similar products on the market suggests a price of $125.00 per unit. The company requires a profit of 0.19 of selling price. How much is the target cost per unit?

© BrainMass Inc. brainmass.com October 25, 2018, 9:34 am ad1c9bdddf
https://brainmass.com/economics/finance/target-costing-methodology-578662

Solution Summary

Target cost per unit is equal to price per unit minus the required profit per unit.

$2.19
See Also This Related BrainMass Solution

Toyota Inc. Accounting - Proposal and project completion

The purpose of the Final Project is to apply the concepts and techniques of the module to the analysis of real-world situations or problems. Students are expected to use diverse sources of information and to carry out an original analysis rather than summaries or rehash existing work. Students are encouraged to use situations and data from their own experience where possible.

Your task for is to prepare and hand in a Project Proposal for Toyota Corp. that includes the nature of the project, the sources of information you plan to use, and the most important concepts and techniques to be applied.

Then, after creating the proposal, complete the project.

You are required to complete a course project that reveals mastery in application of the management accounting and finance concepts emphasized in the course. This involves reporting on Toyota Inc and the management accounting and finance practices that affect the value of the chosen firm or industry. This project should be a formal business report that provides both specific processes and strategies involving budgeting, costing, capital decision making, capital acquisition, and cost of capital structure of the chosen firm. These processes and strategies are to be supported with management accounting concepts.

Your tasks are to:
1. Assess the budgeting process and procedures for the organization with regards to preparation techniques, uses for evaluation, differences between business units/divisions, etc.
2. Analyze how the organization collects, stores, and prepares management accounting information, particularly the use of a management accounting system (MAS) and how information is disseminated throughout the organization.
3. Evaluate the costing process and procedures of the organization with respect to method or approach utilized.
4. Assess the capital decision making process within the organization with regards to what methods are utilized, how such methods are chosen, how projects are selected and managed, and what measures are employed to evaluate performance.
5. Evaluate the criteria or mechanisms used by the organization for deciding how best to acquire capital and analyze the capital structure of the company.
Your Final Project should follow the given outline:
1. Brief description of company
2. Description of firm's budgeting process
3. Management accounting information system
4. Costing process
5. Capital decisions
6. Capital acquisition and structure
7. Conclusion

Your Final Project should also include a section on how and where you obtained the information sources as well as the methodology used to perform any analysis. This project should follow a structured approach and should be prepared and presented as a professional business report.

View Full Posting Details