Steps involved in Target Costing process The following are the main steps or stages involved in the target costing process. 1. Conducting Market Research: The company should determine
What is Target Costing? Target costing is getting importance during the period of difficult market conditions. There is a ever changing of market conditions for any product. Therefore,
What is Standard cost for direct labor? The time required for producing a product should be ascertained and labor should be properly graded. The reason is that all
What is Standard cost for direct material? Direct material means a material used for manufacturing and forming a major portion of a product. A cost is predetermined for
Both standard costing and budgetary control have common objective of controlling costs or expenses. Hence, these systems are considered to be interrelated to each other. But they are
The technique of determining both standard cost and estimated cost is the same and accounting procedures are also equally the same. But, they have the differences with each
Steps in installation of Standard Costing System As Standard Costing is an important management tool, important should be given in its installation. The following steps are involved for
Assumptions of break-even chart The followings are the assumptions of Break Even Chart. 1. All costs are divided into fixed and variable costs. 2. Fixed costs will remain
Under marginal costing, the details of break-even point are represented in graph ie break-even chart. The break-even chart is not only show break-even point but also indicates estimated
What is Labor Rate Variance? Labor Rate Variance (LRV) is otherwise called as labor Price Variance, labor Rate of Pay Variance and labor Wage Rate Variance. It is