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Analysis

By Eric Amar, R. Gay, T. V. Nguyen

ISBN-10: 3540138862

ISBN-13: 9783540138860

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Very often this structure improves communication and many organizations have found that this common team objective of achieving a target cost has speeded up both the development and design stages for new products. Furthermore, the experience of many organizations is that the target costing and SVA team approach reduces the number of problems at the pre-production and production stages because with production being involved from the very beginning of the process, most production problems are anticipated and solved during the design stage.

2001 4 Target costing ■ Definition ■ Example ■ Producer’s, users’ and society’s costs ■ Objectives ■ Target cost management ■ Problems ■ Advantages 46 ■ Conclusions 47 39 40 41 42 42 45 37 Target costing DEFINITION An important element of SVA is bringing a market perspective into the cost system and one way to do this is to use target costing. e. before the development and design stages of that product’s life cycle. Similarly, a target cost for a redesigned product (or service) is set before the existing product is redesigned.

Target costing together with SVA gives a structured team approach to the design of new products (or services). Very often this structure improves communication and many organizations have found that this common team objective of achieving a target cost has speeded up both the development and design stages for new products. Furthermore, the experience of many organizations is that the target costing and SVA team approach reduces the number of problems at the pre-production and production stages because with production being involved from the very beginning of the process, most production problems are anticipated and solved during the design stage.

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Analyse Complexe by Eric Amar, R. Gay, T. V. Nguyen


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