Buy custom An Overview of Target Costing
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1954 |
Essay's paper body
The process begins when top management establishes a target cost for a new product (e.g., a Chrysler Neon or a Caterpillar Excavator). A cost estimating group will then decompose the target cost for the product as a whole into cost targets for subassemblies and individual component parts (e.g., engine, transmission, seats, etc...
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A cost estimating group will then decompose the target cost for the product as a whole into cost targets for subassemblies and individual component parts (e.g., engine, transmission, seats, etc.).
Frequently a “gap†exists between the new product’s target cost and cost projections for the new product based on current designs and manufacturing capabilities...
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