A major car manufacturer developed the following information as part of its target costing efforts: Required(a) Prepare
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A major car manufacturer developed the following information as part of its target costing efforts:
Required(a) Prepare an exhibit similar to Exhibit 8-9 showing percentage contributions of each function group to categories of customer requirements.(b) Prepare a value index exhibit similar to Exhibit 8-10.(c) Which function groups are candidates for costreduction?
Transcribed Image Text:
Customer Importance Rating by Category CATEGORY IMPORTANCE Safety 140 Comfort and convenience 120 Economy 40 Styling 60 Performance 140 Total 500 Target Cost by Function Group FUNCTION GROUP TARGET COST Chassis $1,400 Transmission 280 Air conditioner 100 Electrical system 700 Other function groups 4,520 Total $7,000 Quality Function Deployment (Correlation) Matrix Function Group AIR ELECTRICAL OTHER FUNCTION CATEGORIES CHASSIS TRANSMISSION CONDITIONER SYSTEM GROUPS Safety 0.3 0.1 0.1 0.5 0.1 Comfort and convenience 0.3 0.1 0.5 Economy 0.2 0.2 0.1 0.1 0.4 Styling 0.1 0.9 Performance 0.3 0.2 0.1 0.4
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Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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