NCL Ltd is a fast-growing, high-technology firm, which is adopting target costing approach for its cost...

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NCL Ltd is a fast-growing, high-technology firm, which is adopting target costing approach for its cost management currently. After hearing a talk at a branch meeting about the introduction of an activity-based costing (ABC) system, the CEO asked you to write a short report, advising him how to implement activity-based approaches as a basis for much of its management accounting information. Required: a). Please describe how the target costing approach to cost management for business. b). Explain in what ways "activity-based approaches" may be used for cost management, and discuss the benefits of these approaches. c). You are also suggested to introduce "activity-based approaches" for plans and budgets preparation of the business. Please describe the main features of an activity based budgeting system and comment on the advantages claimed for its use. NCL Ltd is a fast-growing, high-technology firm, which is adopting target costing approach for its cost management currently. After hearing a talk at a branch meeting about the introduction of an activity-based costing (ABC) system, the CEO asked you to write a short report, advising him how to implement activity-based approaches as a basis for much of its management accounting information. Required: a). Please describe how the target costing approach to cost management for business. b). Explain in what ways "activity-based approaches" may be used for cost management, and discuss the benefits of these approaches. c). You are also suggested to introduce "activity-based approaches" for plans and budgets preparation of the business. Please describe the main features of an activity based budgeting system and comment on the advantages claimed for its use.

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a Target costing is a cost management strategy that involves determining a target cost for a good or ... View the full answer