Why is target costing most effectively applied at the researchand development and production process design stage of thevalue chain?

Q: Discuss the advantages of activity-based costing.

A: Activity Based Costing:   The approach of activity based costing keeps the record of resources…

Q: What type of cost drivers do modern costing systems use and how does it differ from the cost drivers…

A: Cost Driver Business activities are  influenced by a cost driver . Cost drivers are the factors…

Q: How does standard costing improves the control function? Comment with examples.

A: A standard costing framework is an accounting instrument utilized for assessing required creation…

Q: Explain in simple terms the notion of equivalent units of production (EUP). Why is it necessary to…

A: Process costing: It is a type of costing method, where the direct costs are accumulated and indirect…

Q: Explain the Role of environmental costing in improving organisational performance

A: Environmental Costing is an important tool for understanding the role played by the Natural…

Q: The target costing is a cost management technique. Discuss the advantages of using this technique…

A: Definition:   Target costing: A costing system that emphasizes on the minimization of existing and…

Q: Discuss the disadvantages of activity-based costing.

A: Activity Based Costing: The approach of activity based costing keeps the record of resources usage…

Q: How is activity-based costing useful for pricing decisions?

A: Pricing Decisions:Pricing decisions are those decisions that are related to ascertain the price of a…

Q: What are the three major ways in which activity-based costing improves the accuracy ofproduct costs?

A: Activity based costing is a system in which costs are allocated to the products on the basis of…

Q: how to cost bwip and ewip in process costing

A: Process costing is a system in which production cost are allocated to individual production stages…

Q: Which type of cost center has a planning focus, and which type has an evaluation focus?

A: Cost Center: It is a department within an organization to which costs can be assigned.

Q: Explain why unit cost is important in the task order costing method.

A: Task Order costing method is used to determine the cost of each order/job/task. This method of…

Q: How is activity-based costing (ABC) different from traditional cost systems?

A: Cost accounting is a branch of accounting in which all costs are analysed and accumulated to…

Q: How we can improve control function using standard costing

A: Standard costing is the process of reporting or showing differences between actual costs incurred…

Q: What is the difference between a structural cost driver and an executional cost driver? Provide…

A: Cost driver: cost driver is a particular unit or specific activity that is responsible for a change…

Q: What are the ethical considerations in the application of activity based costing

A: Activity based costing  is a costing method used to find out cost of every activity of all products…

Q: How do strategic factors affect the proper use of relevant cost analysis?

A: Relevant cost analysis is the process of identifying the incremental cost and benefits of deciding…

Q: Under what conditions would it be appropriate to use a process costing system?

A: Process Costing: Process Costing is refer as method of costing in which all the cost which are…

Q: How to approximate: Traditional Costing versus Activity-Based Costing.

A: Introduction: Cost accounting: Cost accounting can be defined as method or procedure carried out for…

Q: How do current cost management techniques vary from earlier ones in terms of life cycle costing and…

A: Life cycle cost which traces the costs and revenues over a period of life of product.  Life cycle…

Q: How are the current practices of life cycle costing and target costing in cost management different…

A: The target costing is inferred by deducting the overall revenue from the market selling value, that…

Q: What is activity-based management? How is it different from activity-based costing?

A: Activity-based management: Activity-based management is the process of applying activity-based costs…

Q: What is the strategic role of a costing system?

A: Introduction: A costing program is designed to tract the costs a company have incurred. The system…

Q: What is costing system refinement?

A: Broad averaging is also known as peanut butter cost is a costing approach of distributing the…

Q: What is the future of activity based costing

A: Activity based costing (ABC) is the method of modern costing technique. This is the technique in…

Q: Explain why some production costs must be assigned to products through an allocation process.

A: Production costs: These are the costs incurred on product manufacturing or delivering services by…

Q: Explain the Role of life cycle costing in improving organisational performance

A: Life cycle costing: It refers to the lifetime costs that is incurred on an item or an asset over its…

Q: What criteria might managers use to guide cost-allocation decisions? Which are the dominant…

A: Cost Allocation:The process of assigning the cost to the cost object is cost allocation. The cost…

Q: Are the concepts underlying a relevant-cost analysis still valid in an advanced manufacturing…

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

Q: Why does activity-based costing appeal to some companies?

A: Introduction: In the ABC system, various overhead rates refer to all categories of overhead costs,…

Q: How can cost estimation be used in activity-based costing?

A:

Q: Describe the term target costing.

A: Target costing: Target costing is a business procedure that targets at the earliest stages of new…

Q: What is the difference between cost leadership and product differentiation?

A: Cost leadership is a one of the effective marketing strategies. Despite being highly effective in…

Q: What company circumstances especially encourage use of activity-based costing?

A: Activity based costing helps in assignment of indirect costs and overheads that helps companies in…

Q: What is an activity-based approach to designing a costing system?

A: Activity based costing is one of the methods of costing to identify the activities performed to…

Q: What is activity based costing?

A: Activity based Costing is a method of costing system which focuses on activites. In this method of…