For this discussion, you will be acting as a manager for a majormanufacturing corporation. Please select one of the companieslisted below for your scenario:
Proctor & Gamble
General Mills
Nike
General Motors
Cost Accounting
Assume that the company you have selected is bringing a newproduct to market. You have been tasked with the responsibility oftarget pricing and target costing this new product. In your mainresponse posting, you must do the following:
State the company you have chosen and explain the "pretend" newproduct.
Walk through the five-step process shown on pages 523-525(CostAccounting) see below. Explain how you're going to address eachstep of the target pricing and target costing method based on thescenario you havechosen.
1.Develop a Product That Satisfies the Needs ofPotential Customers
2.Choose a Target Price.
3.Derive a Target Cost per Unit by Subtracting TargetOperating Income per Unit from the Target Price.
4.Perform CostAnalysis
5. Perform Value Engineering to Achieve TargetCost
For this discussion, you will be acting as a manager for a majormanufacturing corporation. Please select one of the companieslisted below for your scenario:
Proctor & Gamble
General Mills
Nike
General Motors
Cost Accounting
Assume that the company you have selected is bringing a newproduct to market. You have been tasked with the responsibility oftarget pricing and target costing this new product. In your mainresponse posting, you must do the following:
State the company you have chosen and explain the "pretend" newproduct.
Walk through the five-step process shown on pages 523-525(CostAccounting) see below. Explain how you're going to address eachstep of the target pricing and target costing method based on thescenario you havechosen.
1.Develop a Product That Satisfies the Needs ofPotential Customers
2.Choose a Target Price.
3.Derive a Target Cost per Unit by Subtracting TargetOperating Income per Unit from the Target Price.
4.Perform CostAnalysis
5. Perform Value Engineering to Achieve TargetCost
