Part 1 (40%): THEORY SECTION (up to 1,000 words in total) For the following pricing/costing concepts provide a critical discussion which provides a clear definition of the concept, it benefits and...

Managerial Accounting
Contents
Part 1    3
Target Costing    3
Kaizen Costing    3
Total Life Cycle Costing    4
Total Quality Management    5
Part 2    7
Question 1 (30%): Select a company of your choice and address the following points (up to 600 words):    7
Question 2    11
References    13
Bu
ows, G., & Chenhall, R. H. (2012). Target costing: First and second comings. Accounting History Review, 22(2), 127-142.    13
Part 1
Target Costing
Meaning: target costing is the defined approach of calculating the cost of product. The product on which quality had been produced and the target profit had been set up beyond the fixed selling price. It is one of the techniques of management accounting which aimed at reducing the cost of life cycle of product. It uses some techniques to cut the cost for achievement of the target profits (Bu
ows & Chenhall, 2012).
Target costing is based on the procedure of defining a product then targets are set, the achievement of target followed by achieving competitive cost
Advantage:
· The commitment of process from top to bottom, to get innovation and to achieve advantage from the competition (Markides & Sosa, 2013).
· It evaluates the forces that drive the market and helps the company to design 7 manufacture products as per the specification.
· The technique is useful in controlling management and formulation of cost strategies to achieve the targets at a lower cost.
· It improvises the cost system, so the customer can pay them willingly
· It helps in reduction of the product life cycle (Markides & Sosa, 2013).
Limitation
· The process is the lengthiest as the more consideration is required in the target costing
· Needs a special team to set the targets and strategies the cost program for procedures
Kaizen Costing
Meaning: it is the term of Japanese, which defines continuous improvement. This technique is useful in the additional improvement of the product in the ongoing process. This helps in the constant improvement in development and designing of the product (Hauck, et. al., 2013). In the process of Kaizen costing the existing cost of the product was initialized and improved to enhance the quality of the product and to reduce the cost of production. Technique mainly focuses on reducing the wastes from the production process, other the unwanted steps were eliminated or redefined to make the product economical and budgeted.
Advantage
· The process of Kaizen costing is an addition to the continuous process.
· The wrong or unwanted steps or procedures were eliminated (Sani & Allahverdizadeh, 2012).
· Helps in reducing the wastage of the product
· The steps are verified, so the inspection cost and the chances of e
or had been reduced
· Teams were more accountable in the procedure and the get higher responsibilities to maintain the quality and the cost-efficiency
· Customer specification can be easily handled with Kaizen technique
· Beneficial for both short term s well as long term objectives
Limitation
· Huge and Instant change cannot be expected by Kaizen costing (Okeye, et. Al., 2013).
· Long procedure to reduce cost and maintain changes
· Sometimes reduce the morale of the movement a well as employees
· Time-consuming procedure
Total Life Cycle Costing
Meaning: life cycle cost as the name the cost of the life of the product or plant. It included the expense and income of every product for the periods of the aggregate life cycle (Kaur & KAur, 2012). The product life cycle include
· The development phase in which the idea on the product had been generated and research is done apparently. The cost related to this research and development cost
· Introduction phase is the phase in which the activities fro the manufacturing had been stetted and the product being promoted to the market for consumption, the cost of promotion is included in this stage (Stark, 2015).
· The growth phase is the phase when product does not need much promotion and easily accepted by the customers and highly accepted to the maturity level. Distribution cost and product support cost are the examples of growth phase
· Decline phase is the phase when the plant had been verified and now at the position of scrap or the, reused value. The reused or resale value is been included in this stage
Advantage
· Highly recommendable to generate the revenues and reducing the cost in the long term projects
· Helpful in making a better decision by assessing...