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The term of target costing is the technique of determining the price costs along with the product costs along with the margins that the company wants to achieve for the purposes of developing a new product. In case, the company is not able to manufacture a product at the levels at which the same have been planned, then the company goes in to cancel the design of that project. The management team has a powerful tool whic...
The term standard costing is the practise of comparing in the costs that are based upon the previous year’s experiences as against the actual costs that have been incurred and then recording the differences in between the two. This technique involves the creation of an estimation of the costs that exists between the companies. The main reason for the use of the standard costs is the fact that there are a number o...
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P1: Explain management accounting
The current business scenario requires the managers to make decision on a consistent basis. That involves decision relating to the day-to-day activities, planning and management of strategy. In order to make this decision the managers are required to obtain information that are reliable and based on sound or tested process (Wijaya et al. 2015). In the context of accounting, the informa...
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