Syndetics cover image
Image from Syndetics

Mercedes-Benz : All Activity Vehicle (AAV) / Tom Albright.

By: Material type: TextSeries: Publisher: London : Institute of Management Accountants, 2008Description: 1 online resourceContent type:
  • text
Media type:
  • computer
Carrier type:
  • online resource
ISBN:
  • 9781526428547 (ebook) :
Subject(s): DDC classification:
  • 658.1552 23
Online resources: Accounting systems (both financial and cost) typically focus on costs incurred in the past. For example, the general ledger system is used to record, summarize, and report the effects of past transactions. Using historical costs, many cost management techniques focus on understanding the cost of producing a good or service. Alternatively, target costing is a technique that requires managers to forecast the expected selling price of a product and then subtract a required profit margin. The net result is called a target cost. The intent of target costing is to allow managers to proactively control costs during the design and development phases. The Mercedes case documents the target costing process used by Mercedes-Benz U.S. International.
No physical items for this record

Originally published in Albright, T. (2008). Mercedes-Benz: All activity vehicle (AAV). IMA Education Case Journal, 1(1), Article 2.

Accounting systems (both financial and cost) typically focus on costs incurred in the past. For example, the general ledger system is used to record, summarize, and report the effects of past transactions. Using historical costs, many cost management techniques focus on understanding the cost of producing a good or service. Alternatively, target costing is a technique that requires managers to forecast the expected selling price of a product and then subtract a required profit margin. The net result is called a target cost. The intent of target costing is to allow managers to proactively control costs during the design and development phases. The Mercedes case documents the target costing process used by Mercedes-Benz U.S. International.

Description based on XML content.

Licensed e-book