TARGET COSTING

It is a cost control system and customer oriented technique. calculated

Predetermined target price – target profit=target cost
One can remove non value added features
Reduce material laboue etc.
VALUE ANALYSIS :
Seeks to understand value perceiced by customer of a product.it aims to achieve
target cost by identifying cost effective changes in terms of product composition
and design that could be made so that it donot affect the perceived value of
customer .
The cost reduction will result in enhanced or equivilant value with affecting the
quality and functionality of product.
Value analysis: aims to reduce cost of existing product
Value engineering: Aims to redesign product that have not been launched in
market
Functional analysis:
Aims to improve profits by reducing cost and by improving products by adding
new new features to a product in a cost effective way that are not only attractive
to customers but alos do not affect the value perceived by a customer of a
product