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What is the difference between traditional based costing and target costing?
Traditional Cost Accounting System: In this system company first produce the product and then determine the cost of production and then try to sell that product at price covering that cost plus certain percentage of markup on cost.Target Costing: In this system first of all company determines the value of product in the eyes of customer that is how much a customer is willing to pay for the product and then if cost of production of that product is more then the customer willing to pay then company makes analysis of how they can reduce the cost of production to the level of cost a customer willing to pay by reducing the components of product which is costing towards final price but not giving any value to customer and in this way company tries to acheive the target cost customer willing to pay.
What is Production cost per unit?
The production cost per unit is the cost you would physically spend to manufacture a item. For instance,if I made ice cream. I pay myself 10$ per hour for labour. I can make 60 an hour. A cone costs 20c and the ice cream costs 40c. Thus,the unit cost is 60c (material) plus 10$/60 (labour). Thus the unit cost is 76,66c
What is The term that consists of Development Cost plus Procurement Cost plus the cost of facilities is?
Weapons Systems Cost
Beginning inventory plus the cost of goods purchased equals?
Cost of goods sold.
Cost of sales plus gross profit equals?
Sales
What was the effect of the cost plus system on production?
the system helped get things produced quickly
What did the cost plus system do?
The cost plus system help out in the costs of thing during war. The cost plus system started in World War 2.
How did the cost-plus system sped up war production?
B. providing larger profits for companies that worked fast and produced a lot.
What is a cost-plus?
A system in which the government paid all development and production costs plus a percentage of costs as a profit any company made for war Source: http://www.scriptovia.com/document-landing.aspx?DocID=215
What is the difference between traditional based costing and target costing?
Traditional Cost Accounting System: In this system company first produce the product and then determine the cost of production and then try to sell that product at price covering that cost plus certain percentage of markup on cost.Target Costing: In this system first of all company determines the value of product in the eyes of customer that is how much a customer is willing to pay for the product and then if cost of production of that product is more then the customer willing to pay then company makes analysis of how they can reduce the cost of production to the level of cost a customer willing to pay by reducing the components of product which is costing towards final price but not giving any value to customer and in this way company tries to acheive the target cost customer willing to pay.
How is the total cost of a factory or other production site determined?
Fixed costs plus variable costs.
How is the total cost of a factory of other production site determined?
Fixed costs plus variable costs.
Problem of cost-plus pricing?
Anyone who agrees to pay 'cost plus' is guaranteeing the vendor a profit no matter how badly or sloppily the vendor company is managed. 'Cost plus' removes any incentive for the vendor to reduce waste, maximize production, or do anything at all that is good for the customer. If the 'cost plus' is a percentage then the more money the vendor spends to deliver the goods, the greater his guaranteed profit.
If speed plus speed plus speed equals kills what does speed equal?
Kills/3
Cost- plus pricing?
Cost-plus-pricing is one of the simpler methods of price setting. Cost-plus-marketing basically is adding a standard mark up to a product after production and distribution costs have been met. This method which ignores demand and competitor pricing is not highly recommended for a company looking for high profit margins.
What is cost-plus-pricing?
Cost-plus-pricing is one of the simpler methods of price setting. Cost-plus-marketing basically is adding a standard mark up to a product after production and distribution costs have been met. This method which ignores demand and competitor pricing is not highly recommended for a company looking for high profit margins.
Is cost-plus pricing?
Cost-plus-pricing is one of the simpler methods of price setting. Cost-plus-marketing basically is adding a standard mark up to a product after production and distribution costs have been met. This method which ignores demand and competitor pricing is not highly recommended for a company looking for high profit margins.
