what is a standard cost? and what is a target cost?
Answers were Sorted based on User's Feedback
Answer / chintan
Standard costing is used mainly in mass production as a
tool for control. Costs for standard parts are established
by work study or experience, actual costs then being
checked against the standard costs.
Target costing is a reversed cost accounting technique.
Instead of calculating costs first and then setting the
price based on these calculated costs, target costing does
it the other way around. Target costing is convenient for
firms operating in perfect competition. The steps in target
costing are as follows: 1. Determine the price consumer is
willing to pay for the product, say Rs. 15. This may be
arrived at after conducting a market research; 2. Determine
the profit margin the business is willing to accept, say 8%
of Z; 3. On subtracting the above two, i.e., 15 Rs - 1.11
Rs = 13.88, Target cost is determined.
Is This Answer Correct ? | 14 Yes | 7 No |
An asset was bought in 2000 for company code xxxx for 10000... and was depreciated for 2 years.. then realized asset was of no use in CC xxxx and was transferred to CC yyyy. what wd be capitalization value of asset in new CC
hi all, can both partial and residual payments be posted in one invoice, if so what is the process for doing that?
Explain the customization setting for FI validations?
What is senario of business area
I have learn the course SAP FI/CO in the Yr.2007 and have an experience in this part as a FI-End user of 2.8 yrs. Presently I have working in ERP –Accounts department & have More than 15 yrs. Experience. Please suggest me how can I grow my experience in SAP FI/Co due to changing my job? Waiting for your response plese.
Suppose a wrong item rate is entered in SAP system as Rs10 though it supposed to be Rs11 per purchase order. How do you correct this in SAP system? Can we reverse this document
what is mean by enterprise structure
What is a standard hierarchy? : co- cost center accounting
What is the difference between SAP R/3 version 4.6C, 4.7 and ECC 5.0? this question is being frequently in the interviews...please help...
How systems doing cheque Printing.
what is workbench transport request?
What is an account group and where it is used?