If the target cost is less than what is currently achievable, management must find ways to reduce costs in order to attain the target cost. Describe the three cost reduction methods that are typically used
The three cost reduction methods are reverse engineering, value analysis, and process improvement. In reverse engineering, the competitors' products are taken apart (examined) in order to discover more design features that create cost reductions. In value analysis, the value placed by customers on various product functions is assessed to determine whether the product should be eliminated or whether some components could be modified or replaced with inexpensive ones. Process improvements entail redesigning processes that are used to produce and market the product in order to improve their efficiency.
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The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year 2010 are as follows: January 1 finished goods, $765,000; December 31 finished goods, $640,000; cost of goods sold for the year, $2,560,000. The budgeted costs of goods manufactured for the year is?
A) $1,405,000 B) $2,560,000 C) $2,435,000 D) $3,965,000
Consider a $30,000 car loan over six years at 7% APR. Assume an option where the car loan offers 0% financing for the first two years of the loan or 7% financing over six years. What are the payment choices to ensure that no interest on the loan is paid?
What will be an ideal response?
Which of the following is not true about the Allowance for Doubtful Accounts?
A. It is debited when uncollectible accounts are written off. B. It is used instead of reducing accounts receivable directly. C. It is a liability account. D. It is a contra asset account. E. It is credited when bad debts expense is estimated and recorded.
List some of the common metrics used in HCM systems
What will be an ideal response?