资源描述
Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,*,Tehran UniversityManagement Faculty,Management Accounting Presentation,Target Costing,Vina Tarjoman,Supervisor:Dr.Nikbakht,November,2019,1,Tehran UniversityManagement,Target Costing,$,2,Target Costing$2,Outline,Definition of target costing,General concept,Target costing characteristics,Target costing process,Establishing target cost,Achieving target cost,Organizational impact,Conclusion,$,3,OutlineDefinition of target co,What is,Target Costing,4,What is 4,Target Costing,A target cost is the allowable amount of cost that can be incurred on a product and still earn the required profit from that product,A strategic profit and cost management process,Price-led,Customer-focused,Design-centered,Cross-functional,Life cycle oriented,Value Chain-based,$,5,Target CostingA target cost is,General Concept,Target cost is the cost that can be incurred while still earning the desired profit,Selling price desired profit=target cost,The customer sets the price,Profit must be achieved through cost control,$,6,General ConceptTarget cost,Target Costing Characteristics,To these Contradicts the traditional approach:design product,determine cost,set price,Intense customer focus,What do they want?,How much will they pay for it?,Can we make a profit on it?,Want answers questions before committing to the project,$,7,Target Costing Characteristics,Target Costing Characteristics,Cost control from the beginning,70-90%of costs are committed to at the design stage,Focus on product and process design to engineer out costs from the beginning,$,8,Target Costing Characteristics,Target Costing Characteristics,Product,manufacturing process,delivery process designed simultaneously,Ensures features customers demand,but within acceptable cost parameters,Eliminates the temptation to add costly features,Customers may not value the added features,$,9,Target Costing Characteristics,Target Costing Characteristics,Cost control at all phases of the product life cycle,Design,Production,Delivery/setup,Customers cost of ownership,Service and repair,Disposal and recycling,$,10,Target Costing Characteristics,Cross-Functional Team,Marketing,Design/engineering,Manufacturing,Purchasing,Including suppliers,Distribution,Service/support,Cost accounting,Finance,Legal,$,11,Cross-Functional TeamMarketing,Conceptdevelopment,Planningand marketanalysis,Productiondesign andvalueengineering,Productionandcontinuousimprovement,Targetprice,Profitmargin,Targetcost,Establishing theTarget Price,Achieving the target cost,The Target Costing Process,$,12,ConceptdevelopmentPlanningan,Target Costing Process,Two stage process,Establish the target cost,Market research,Product planning,concept development stages,Achieve the target cost,Value engineering,continuous improvement,Design stage,Continuous improvement in later stages,$,13,Target Costing ProcessTwo stag,Establishing the Target Cost,Determine the product and its market,Who is the target market?,What do they want?,What do competitors offer?,Introduce concept or prototype,Evolutionary or revolutionary?,Refine until it meets customer needs,$,14,Establishing the Target CostDe,Establishing the Target Cost,Determine the selling price,Must be acceptable to the customer,Must be able to withstand competition,Existing price+/-value of features added or deleted,Consensus of focus group,Price predicted to achieve a desired market share,$,15,Establishing the Target CostDe,Establishing the Target Cost,Determine the required profit,Return on sales,Desired return,Historical return for similar products,Industry average for similar products,Return on sales will fluctuate over the life of the product,Price and costs fluctuate,$,16,Establishing the Target CostDe,Establishing the Target Cost,Unit price,cost and profit are almost meaningless because they fluctuate,Life cycle totals are more meaningful,Total expected revenue throughout product life-,Total desired profit throughout product life=,Total target cost,$,17,Establishing the Target CostUn,Achieving The Target Cost,18,Achieving The Target Cost18,TARGET COSTING.Achieving Target Costs,Initial,Cost Estimates,Perform,Value,Engineering,Perform,Cost,Analysis,Design,Products/,Processes,Release Design to,Production,COMPUTE COST GAP,DESIGN COSTS OUT,PRODUCE,Compare,To Target,Cost,ACTUAL,COST,Estimate,Achievable,Cost,Undertake,Continuous,Improvement,$,19,TARGET COSTING.Achieving Ta,Achieving the Target Cost,Must include the features the customer wants while maintaining cost at or below target,Want to meet the customers needs,but not exceed them,Eliminating desired features will result in an undesirable product,Adding unwanted features will increase cost,Failing to keep cost at or below target will result in unacceptable profits,$,20,Achieving the Target CostMust,Achieving the Target Cost,Determine the cost gap between current cost and allowable cost,Current cost is based on,Currently
展开阅读全文