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Business English Exercises
 

Price-based or Target Costing

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Home > Teaching Business English > Business English Lessons, Advanced Level # 136
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The target cost is a financial goal for the full cost of a product, ......... from estimates of selling price and desired profit (which top management sets on the basis of firm strategy and financial goals).


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Product selling price is ......... by the marketplace and is determined by analysis along the entire industry value chain and across all functions in a firm.


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......... to most target-cost applications is a belief that large-scale cost planning and reduction must occur early in the product life cycle.


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However, Shank and Fisher believe there is no ......... reason the methodology cannot be a value-added exercise applied to existing products during manufacturing.


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501 Business English Exercises — Printable, photocopiable.
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They ......... that if managers were to believe that, during manufacturing, only incremental (i.e., slight) change is possible, firms would likely miss significant strategic opportunities.


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Shank and Fisher present a case study that demonstrates the relevance of target-costing techniques for a process-industry plant built in the 1890s that had been making ......... the same products for fifty years.


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The firm's managers, who had used a standard-cost system for many years, might have concluded that ......... costing was most appropriate for this plant.


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However, competitive realities necessitated a major strategic change that employed target costing as an important ......... in cost-reduction efforts leading to strategic revitalization.


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The standard cost concept essentially dropped out of the ..........


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Because standard costing accepts the existing game rules and the existing value chain, the authors believe that fundamental cost ......... are much more probable when using target costing.


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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
You will be exposed to a wealth of authentic sample sentences that include a great variety of themes. This compact Business English Test Package is the only printable English test collection currently available on the Internet. It contains 501 Business English Exercises (10 questions per test plus answer keys).  Get your unique Business English Practice Exercises now!

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