An attempt to reconstruct target costing theoretical foundations Cover Image

Próba rekonstrukcji podstaw teoretycznych rachunku kosztów docelowych
An attempt to reconstruct target costing theoretical foundations

Author(s): Jarosław Mielcarek
Subject(s): Economy
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: reconstruction; target costing; financial success; unit allowable cost; minimum rate of return

Summary/Abstract: The main issue taken up by the TC concerns whether the conditions of financial success of the new product implementation are fulfilled. Omission of depreciation in the calculation of cash flows prevents against taking it into account twice when calculating the allowable unit cost. No settlement of losses incurred during the pre-production phase results from the assumption that the tax arrangements should not affect the calculation of the minimum rate of return and the target unit cost. The first method of the minimum rate of return calculation was to be given by a discount formula, and the second by the use of Excel add-in Goal Seek (What if) within the constructed economic and mathematical model. Built-in Excel function NPV was modified according to the assumption that there was taken up a cash flows beginning mode proper for modernization investments.

  • Issue Year: 2013
  • Issue No: 289
  • Page Range: 394-405
  • Page Count: 12
  • Language: Polish