Discuss differences in approach and potential usage between target and kaizen costing
Target costing is considered a procedural approach that is used to determine a maximum allowable cost for a product, while kaizen costing is a mandate to reduce costs, increase product quality, and/or improve production process through continuous improvement. Target costing has a large potential for cost reduction in life-long product cost because these costs are embedded in the product during design and development. Kaizen costing has limited potential in cost reduction of existing products, but may be useful in target costing in the future.
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a) Compute Cinnabar's unit product cost under absorption costing and variable costing. b) Prepare income statements for Cinnabar using absorption costing and variable costing. c) Calculate the balance in Finished Goods Inventory using absorption costing and variable costing. Assume that the production level, costs, and sales prices were the same in the previous year.
Cinnabar, Inc. has provided the following data for the year:
Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a ________
A) channel intermediary B) line extension C) market segment D) product attribute E) brand personality
________ is a form of property insurance that insures an automobile from loss or damage due to causes other than collision
A) Omnibus insurance B) Comprehensive insurance C) Coinsurance clause D) No-fault automobile insurance
Which of the following statements about straight rebuys is true?
A. Straight rebuy decisions cannot be influenced by advertising. B. Straight rebuy decisions usually involve getting negotiated bids from suppliers. C. Straight rebuy decisions are infrequent, but they typically take longer to make than new-task buying decisions. D. Straight rebuy decisions, as contrasted with modified rebuys, are more likely to involve multiple buying influence. E. Straight rebuy vendor selections are likely to be made by a purchasing manager without consulting anyone else.