Costs may be categorized in a variety of ways according to information needs of management. Illustrate out this statement with appropriate exs.
(a) Illustrate out the differentiation between “Cost Reduction” and “Cost Control”.
(b) What are the prerequisites for effective cost reduction programme?
(c) Discuss and illustrate out the “Value System” as a cost reduction tool.
(a) What do you understand by the phrase benchmarking? Illustrate out how benchmarking can be used for measurement of organizational performance.
(b) How can non financial measures be employed to assess organizational performance?
What are the benefits of Activity Based Costing? Why is it not popular nowadays?
Describe and discuss how target costing can be used to improve product design and planning.