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Arlecino [84]
4 years ago
12

As a Cost and Management Consultant in the banking industry in Ghana, one of your highly esteemed clients, a top tier banking in

stitution 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
Business
1 answer:
morpeh [17]4 years ago
3 0

Answer with its Explanation:

The target costing is a costing technique that helps to reduce the cost of the company operations by setting cost targets for the operations. The first step under target costing is to set a selling price for the product and the second step is to set the target profit margin. Now at this position we are able to derive the target cost by taking the difference of profit margin and the selling price of the product. At this stage the actions and reforms required to achieve this target cost are determined and implemented in the current operating activities. The best part of the target costing is that it says that the pricing though matters but the main aspect of a product success is its cost controls. If the company is able to control the cost of the product then it can control the movement of prices in the market. So target costing specially focuses and stresses upon cost control procedures.

As Target costing is all about cost controlling and can be applied to any sector. In Ghana, target costing will help to control the cost of the services that the banking sector renders to its customers. This reduction in services cost can be achieved by automation, installation of new softwares, Investing in automated teller machines, etc. By gaining efficiencies, the banking sector will substantially reduce its cost thus achieving its target cost.

By achieving the target cost the bank will have to sell at the same rate as the bank had invested its time and money in efficiency gaining activities. There are a lot of activities and products that can be automated and that can help to achieve the target cost. For example, promoting internet banking will reduce the cost of ATM management, paper cost, management time, additional branch opening or extension of building, etc. We can see how easily internet banking will assist the banking sector to achieve its target costs.

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Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are p
dmitriy555 [2]

Answer:

270,000 units

Explanation:

Given that:

Beginning Inventory for finished goods: 31,000

Ending Inventory for finished goods :  41,000

Beginning Inventory for raw materials: 61000

Ending Inventory for raw materials: 51,000

Units planned to be sold: 260,000

We compute the produced finished goods = Ending inventory + Units sold − Beginning inventory

           = 41,000 + 260,000 − 31,000 = 270,000

The number of units the company would have to manufacture during the year would be 270,000

6 0
3 years ago
In December 2016, Shire Computer’s management establishes the 2017 predetermined overhead rate based on direct labor cost. The i
Oksana_A [137]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $754,000 of overhead costs and $580,000 of direct labor cost.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 754000/580000= $1.3 per direct labor dolar

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

5 0
4 years ago
Cross-border acquisitions are primarily made to: Group of answer choices overcome barriers to entry in another country. reshape
miv72 [106K]

Answer:

Overcomes barriers to entry in another county.

Explanation:

Cross border acquisitions: Buying assets for your company in another country.

  • Most companies tend to relocate itself beyond the border to get the idea of international market, and gain a competitive advantage for themselves in their domestic market.
  • The primary reason for a company to relocate is, getting an entry in the market of of another company which looks profitable. By acquisition the barriers would be gone.
4 0
3 years ago
True or False: In business messages, the quantity of words enhances the quality of the message. True False
galina1969 [7]

Answer:

The statement is: False.

Explanation:

Many people have the wrong idea that writing long paragraphs is better to provide a more professional look to a study or report. However, in business especially, the optimal rule to follow is to be short and concise. Managers need information that will help them make decisions. Thus, the data provided must give clear conclusions from where the decisions can be taken. Wordy reports seem unuseful for that purpose.

5 0
4 years ago
Stocks are shares of ownership in a company. A stock certificate represents stock ownership. It specifies the name of the compan
Anna11 [10]

Answer:

<u>Advantages</u>

Dividends

These are payments to shareholders as a way to share the profits the company has accumulated.

This is an advantage to the issuing company because they are usually not under any obligation to pay Dividends with respect to common Equity. As a result profits can be plowed back into the company to increase profitability.

Repaid

This refers to the fact that shareholders do not have to be repaid for their investment like debt holders are. Stock Holders bought a piece of the company instead of loaning money to the company so they do not have to be paid back. This is an advantage because it frees up Cashflow for the company as well as allowing it to maintain a better credit rating due to lower debts.

Future Buy-Back

This is a clause inherent in most shares. It means that the Issuing company can choose to buy back the stock at a given time in future.

This is an Advantage because it allows the Issuing company to regain control of the company at a future date.

<u>Disadvantages</u>.

Shareholders

Shareholders are people or entities who buy shares in the Issuing company. As such, they are owners in the company and have voting rights on decisions that the company makes. This is a disadvantage because it means loss of Independence for the company who now legally have to take the opinions of shareholders into account.

Net Profit After Tax

This is money that the company has after paying off interests and then taxes. This is the money that the company retains. Having shareholders means that a company may have to pay shareholders from this amount instead of retaining all of it thereby making it at a disadvantage to the Issuing company.

One Vote per Share

This means that every shareholder has a vote for every share they hold in the company. This means that Shareholders therefore have a say in the affairs of the company. This is a disadvantage to the Issuing company because it means a loss of Independence for them when decisions need to be made.

7 0
3 years ago
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