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What is Target Costing

Advanced Methodologies and Technologies in Business Operations and Management
A form of costing system in which the manufacturing of a product or the provision of a service is restricted within a predetermined total cost ceiling so that a competitive price is achieved.
Published in Chapter:
Managerial Tools and Techniques for Decision Making
Davood Askarany (University of Auckland, New Zealand)
DOI: 10.4018/978-1-5225-7362-3.ch053
Abstract
The main aim of this chapter is to explain what are considered managerial tools and techniques for decision making in the area of management accounting and how they developed and evolved over the time. This chapter is intended to help us document the innovation, evolution, and the adoption of a variety of relatively new management accounting techniques and practices in organizations. The chapter also looks at primary tasks/services performed by managerial techniques and tools to capture a wider range of techniques/tools that contribute to the conduction of managerial tasks/services but may not be listed as managerial tools in the literature.
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Managerial Tools and Techniques for Decision Making
A form of costing system in which the manufacturing of a product or the provision of a service is restricted within a predetermined total cost ceiling so that a competitive price is achieved.
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Innovation of Management Accounting Practices and Techniques
A form of costing system in which the manufacturing of a product or the provision of a service is restricted within a predetermined total cost ceiling so that a competitive price is achieved.
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Integrating Software Engineering and Costing Aspects within Project Management Tools
A cost prediction model that suits an engineering framework in which there are several engineering activities which take place simultaneously. It is utilized as a means for costs strategic management. The idea behind the method is that a product’s cost must be based on the sum that can be received for it in the market. It is therefore the development costs which should be the basis for the quantity and mode of investment in the development rather then the development’s outcome.
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