Questions from Cost Management

Q: Explain the two methods for reducing total product costs to achieve a

Explain the two methods for reducing total product costs to achieve a desired target cost. Which is more common in the consumer electronics industries? In the specialized equipment manufacturing indus...

Q: What does the term sales life cycle mean? What are the

What does the term sales life cycle mean? What are the phases of the sales life cycle? How does it differ from the cost life cycle?

Q: Do pricing strategies change over the different phases of the sales life

Do pricing strategies change over the different phases of the sales life cycle? Explain how.

Q: What is the present value of a stream of 5 end-

What is the present value of a stream of 5 end-of-year annual cash receipts of $500 given a discount rate of 14%? (a) Use the appropriate table in the text (i.e., Appendix C, Table 2) and (b) the ap...

Q: Do cost management practices change over the product’s sales life cycle?

Do cost management practices change over the product’s sales life cycle? Explain how.

Q: What does the concept of value engineering mean? How is it

What does the concept of value engineering mean? How is it used in target costing?

Q: For what types of firms is target costing most appropriate and why

For what types of firms is target costing most appropriate and why?

Q: What is life-cycle costing? Why is it used?

What is life-cycle costing? Why is it used?

Q: Name the five steps of the theory of constraints and explain the

Name the five steps of the theory of constraints and explain the purpose of each. Which is the most important step and why?

Q: What is the difference among a master budget, pro forma budgets

What is the difference among a master budget, pro forma budgets, and a flexible budget? Explain.