The following statements have been made about target costing and lifecycle costing. Target costing ensures that...

The following statements have been made about target costing and lifecycle costing.

Target costing ensures that new product development costs are recovered in the target price for the product.
Lifecycle costing is more useful for planning than control purposes.

Which of the above statements is/ are true?

Expert Solution

Target costing is defined as a structured approach in determining the cost at which a proposed product with specified functionality and quality must be produced to generate a desired level of profitability at its anticipated selling price.

Therefore target costing approach ensures that a product cost are tuned to make its production profitable as per the demand and expected sellinp price. Therefore it is a tool for profit management rather than a tool for cost reduction or cost management.

Therefore the statement that "Target costing ensures that new product development costs are recovered in the target price for the product" is False

Lifecycle costing aims at cost ascertainment of a product over its projected life through the various stages of product life cycle. It is a system which tracks and accumulated the actual costs and revenues attributable to cost objects and is therefore important in planning the production as well as analysing any deviation in the production costs and revenues.

Therefore the statement that "Lifecycle costing is more useful for planning than control purposes." is False

ekkarill92 answered 1 year ago

All of the following statements about the median are true, except: it may not have been...

All of the following statements about the median are true, except: it may not have been a score actually in the distribution it is not sensitive to outliers it is appropriate for all measurement scales approximately 50% of the scores will be above the median and 50% below it divides a distribution in half n a positively skewed distribution, the mean is ____________ the median. typically equal to always less than equal to half of always equal to typically greater...

Suppose that strong claims, with weak evidence, have been made about the efficacy of an herbal...

Suppose that strong claims, with weak evidence, have been made about the efficacy of an herbal treatment for attention deficit disorder (ADD). You are a research assistant for a professor who decides to empirically test the validity of these claims. You locate 10 fifthgrade students, in 10 different classrooms, who have been diagnosed with ADD. Sitting unobtrusively at the back of each classroom with stopwatch in hand, you record the number of seconds that the child with ADD is out...

The following note appears in the financial statements of a company: “The financial statements have been...

The following note appears in the financial statements of a company: “The financial statements have been prepared on the historical cost basis, except for the measurement of certain financial instruments at fair value, and incorporate the principal accounting policies set out below” Please discuss in your own words your understanding of this statement in full. Provide examples to support your discussion.

Think about examples where “Big Data” seems to have been used to target you or improve...

Think about examples where “Big Data” seems to have been used to target you or improve your experience with a firm or organization. Research the effort online to see if you can uncover any details. How does this make you feel on the spectrum spanning from “great service” to “creeped out”?

***Using EXCEL Suppose that strong claims, with weak evidence, have been made about the efficacy of...

*******Using EXCEL**** Suppose that strong claims, with weak evidence, have been made about the efficacy of an herbal treatment for attention deficit disorder (ADD). You are a research assistant for a professor who decides to empirically test the validity of these claims. You locate 10 fifthgrade students, in 10 different classrooms, who have been diagnosed with ADD. Sitting unobtrusively at the back of each classroom with stopwatch in hand, you record the number of seconds that the child with ADD...

For this project, following assumptions have been made: The booking is only open for the next...

For this project, following assumptions have been made: The booking is only open for the next seven days from the current date. Only two categories of the plane can be booked i.e. Economy and Business. The total number of tickets that can be booked in each category is 10 only. By ‘user’, we mean the person who is booking the ticket for the passenger(s). For example, an employee of Saudi Airline. Your project should include information about the following entities...

Discount retailers like Wal-Mart and Target have entered the market. But why have these made it...

Discount retailers like Wal-Mart and Target have entered the market. But why have these made it more challenging to make money for supermarkets?

Inconsistent Statements on Accounting Principles The following two statements have been taken directly or with some...

Inconsistent Statements on Accounting Principles The following two statements have been taken directly or with some modification from the accounting literature. Statement 1. Accounting is a service activity. its function is to provide quantitative financial information that is intended to be useful in making economic decisions about and for companies. Thus, the accounting function might be viewed primarily as being a tool or device for providing quantitative financial information to management to facilitate decision making. Statement 2. Financial statements that...

You have been given the following information regarding a potential merger and acquisition. Bidder Target #...

You have been given the following information regarding a potential merger and acquisition. Bidder Target # of shares outstanding 200,000 40,000 Price per share $50 $125 Net Income 200,000 200,000 If the bidder pays $150 per share for each share of the target the new stock price would be $54 per share. A) What is the NPV to the bidder, ? B) what was the premium paid to the target? C) what were the synergies from the merger.? Instead of...

Two observations can be made about variable and absorption costing. First, a variable costing income statement...

Two observations can be made about variable and absorption costing. First, a variable costing income statement classifies cost based on behavior, variable or fixed. An absorption costing income statement classifies cost based on nature (use in manufacturing or selling and administration, etc.). Second, in variable costing income statements, fixed manufacturing costs are excluded from inventoriable costs. In absorption costing income statements, fixed manufacturing costs are included in inventoriable costs. Many large companies prepare both kinds of income statements. For what...

Question