Question 1 What forces have caused cost and management accounting systems designed decades ago to become less relevant and less valuable for organizational employees in today’s globally competitive environment? (15 marks) Question 2 As a Cost and Management Consultant in the banking industry in Ghana, one of your highly esteemed clients, a top tier banking institution in Ghana has required of you to advise them as to whether target costing can be applied to the banking industry in Ghana. They further require you to advise them on what products or services can target costing be applied.
Answers
Answer:
SORRY, I DIDN'T UNDERSTAND YOUR QUEDTION.
Answer:
Ans 1 -There are various reasons which have led Cost and Management accounting systems designed decades ago to become less relevant as well as less valuable for the organizational employees. Some of those are:
- The overheard costs over the decades have risen with an immense drama.
- The availability of direct labor have reduced, almost accounting upto 12% of the total original cost.
- The costs related to equipment are taking up almost the total original cost. Apart from these, there are still numerous reasons that account for the given problem.
Ans 2 - The target costing system is basically can be used in modern banking services/industries. In this, a bank harmonizes beneficially with the customer needs. It determines the service costs and settle it according to themselves to satisfy the customers and maintaining the quality and competitiveness alongside. Therefore, Yes, target costing can be applied to banking industry in Ghana.
Further, target costing is best suited on electronics and computer-related industries. Many famous these type of industries which use target costing are Mercedes, Panasonic, Apple, Toyota, Toshiba, etc. Hence, in these services, target costing can be applied.