TAILIEUCHUNG - Lecture Cost management: A strategic emphasis - Chapter 13: Cost planning for the product life cycle: target costing, theory of constraints, and strategic pricing

After studying this chapter, you will know: Explain how to use target costing to facilitate strategic management, apply the theory of constraints (TOC) to strategic cost management, describe how life-cycle costing facilitates strategic management, outline the objectives and techniques of strategic pricing. | Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing Chapter Thirteen 13-2 Learning Objectives Explain how to use target costing to facilitate strategic management Apply the theory of constraints (TOC) to strategic cost management Describe how life-cycle costing facilitates strategic management Outline the objectives and techniques of strategic pricing 2 13-3 The Product Life Cycle Four management methods discussed in this chapter: Target costing Theory of constraints (TOC) Life-cycle costing Strategic pricing All involve the entire product life cycle: Managers now need to look at costs upstream (before manufacturing) and downstream (after manufacturing) 3 13-4 The Cost Life Cycle “Cost life cycle” refers to the following sequence of activities: Research and Development (R&D) Design Manufacturing (or providing the service) Marketing/distribution Customer service It is the life cycle of a product or service from the viewpoint of costs incurred 4 Upstream Activities Downstream Activities R&D Design Manufacturing Marketing and Distribution Customer Service Design decisions account for much of total life-cycle costs The Cost Life Cycle (continued) 13-5 5 13-6 The Sales Life Cycle The Sales life cycle is the sequence of phases in the product’s or service’s life: Introduction of the product or service to the market Growth in sales Maturity Decline Withdrawal from the market The sales life cycle is the life cycle of a product or service from the viewpoint of sales volume achieved 6 Introduction Growth Maturity Decline Time Sales Important cost management issues arise in each stage of the life cycle. The Sales Life Cycle 13-7 7 Introduction Maturity Decline Time Sales Some products have an accelerated life cycle Growth The Sales Life Cycle 13-8 8 13-9 Target Costing Target costing: a costing method in which the firm determines the allowable (., “target”) cost for a product or service, given a competitive market price

• Quản trị kinh doanh
• Cost management
• Cost systems
• Lecture Cost management
• Operational performance measurement
• Cost planning
• Product life cycle
• Management control systems
• Cost accounting
• Fundamentals of cost accounting
• Cost analysis
• Cost management systems
• Strategic performance measurement
• Cost management information
• Financial reporting
• Resource capacity management
• Indirect cost variances
• Cost allocation
• Cost allocation bases
• Cost estimation
• Cost estimation methods
• Ebook Management and cost accounting
• Management and cost accounting
• Management accounting
• Cost assignment
• Process costing
• Cost volume profit analysis
• Project management
• Lecture Project management in practice
• Project cost management
• Project perspective
• Cost management plan
• Cost versus expenses
• Cost volume profit
• Short term profit planning
• Direct cost variances
• Nonfinancial performance measures
• Cost centers
• Profit centers