Assume that you work for a cellular telephone manufacturer and have been assigned to the development team for a new line of cell phones that includes a personal digital assistant, camera, and music player. Assume that this type of cell phone was developed under the target costing system approach rather than the traditional cost-plus approach.
a)Identify the steps you would take in the target costing cycle, using this cell phone as the product.
b)After the phone has been developed, kaizen costing will be used to improve quality and to reduce costs in the future. List one advantage and one disadvantage of using kaizen costing for this type of product (i.e., cell phones).
c)Explain why a team of personnel from product engineering, marketing, and accounting can contribute to the success of a target or kaizen costing system.

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The Answer of Assume that you work for a cellular telephone manufacturer and have been assigned to the development team for a new line of cell phones that includes a personal digital assistant, camera, and music player. Assume that this type of cell phone was developed under the target costing system approach rather than the traditional cost-plus approach.
a)Identify the steps you would take in the target costing cycle, using this cell phone as the product.
b)After the phone has been developed, kaizen costing will be used to improve quality and to reduce costs in the future. List one advantage and one disadvantage of using kaizen costing for this type of product (i.e., cell phones).
c)Explain why a team of personnel from product engineering, marketing, and accounting can contribute to the success of a target or kaizen costing system.

Assume That You Work for a Cellular Telephone Manufacturer and Have