Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Cost driver analysis
Cost drivers are factors, which determine the costs of an activity i.e. a change in the cost driver will cause a change in the level of total cost related cost object. The cost drivers can either be volume based or transaction based. The company must therefore understand its cost drivers so as to control costs.Target costing
This is another contribution to strategic management accounting. This is an approach to product pricing widely applied by Japanese companies and now being given a lot of attention in the USA and Europe. It is determined by exterior market factors.
A target market price is recognized by marketing management former to designing and introducing a latest product. This target price is put at a level which will allow the company to attain a desired market share and sales volume. A preferred profit margin (target profit) is then deducted to determine the target maximum allowable product cost (target cost).
Product costs are computed based on design specification and compared with the target cost. If the projected product cost is above the target cost then product designer’s focus on it becomes cheaper to produce. Manufacturing engineers also focus on methods of improving production efficiency so that the target cost can be achieved even after a period of one to two years. A team of designers, engineers, marketing and production personnel, together with the management accountant, concentrate on producing a product that meets the target cost requirement. The role of the management accountant is to produce cost estimates for the various projected product designs, measure and monitor product costs once the production process begins.
Define performance budgeting according U.S. bureau of budget U.S. bureau of budget defines performance budget as one which presents purposes and objectives for which funds are
definition and illustrations
Determine the Inputted cost It is hypothetical cost required to be considered to make costs comparable. It is the owner of the factory charges rent of the factory to the cost
What are the Features of zero base budgeting 1) Manager of a decision unit has to completely justify why there should be at all any budget allotment for his derision unit. This
Conceptual understanding: defining in identifying relevant information Business application - Dave burgers is in the fast food restaurant business. One component of it's market
Costing Cost accounting can be described as the collection, interpretation of cost and assignment. In succeeding chapters, you will learn about alternative costing techniq
Classification and computation of variances The computation and analysis of variances is the main aim of standard costing. The variance is the difference among the standard pe
Marginal cost or incremental cost pricing method: Here the company may work on the premise of recovering its marginal cost and getting a contribution towards its overheads. Thi
The Role of Computers in Simulation Computers can be used to: 1) To generate the random numbers 2) To simulate thousands of trials. This is done extremely fast, accuratel
identify and briefly describe four trends in macro market environment which influence on the selected industry?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd