Reporting Accounting Assignment
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target_costing_template.pptxTarget Costing Template
Instructions: Put a frame (picture) in front of you and use it as a model for the exercise. Follow the steps in your slides as if you were on a new product development team. You will need to make some guesses with regard to costs, but do the best you can.
Once you complete the steps through the Value Index, write up your interpretation including your recommendations. Structure it like you are talking to the manager of New Product Development.
Step 1: List Components and Functions
| Component | Function | Cost Amount | Cost Percent |
2
Step 2: Cost Breakdown
| Component | Function | Cost Amount | Cost Percent |
Cost includes materials and conversion costs.
3
Step 3:Rank of Customer Desired Features
| Customer Features | Customer Ranking 1=not imp. 5=very imp. | Percent Score |
4
Step 4: Relate Features to Components
| Components Features | ||||||
5
Step 5: Relative Importance Scores
| Components Features | Relative Feature Score | ||||||
6
Step 6: Value Engineering
| Component | Component Cost (step 2) | Relative Importance (step 5) | Value Index (RI / CC) | Action Implied |
7
Interpretation and Recommendation
