This website uses cookies to ensure you have the best experience. Learn more

“Montclair Paper Mill's Experiment With Target Costing” – A Case Study

2293 words - 9 pages

Please cite this Article as : , TARGET COSTING" - A CASE STUDY : Tactful Management Research Journal (Oct ; 2013)
KISHOR NIVRUTTI JAGTAP "MONTCLAIR PAPER MILL'S EXPERIMENT WITH
Tactful Management Research Journal
KEYWORDS:
Montclair Paper , organization , management , Manufacturing management .
INTRODUCTION
Target costing affects profitability of an organization depending on the commitment of management to its use, the constant involvement of cost accountant in all phases of a product's life cycle, and the type of strategy the organization follows. Target costing improves profitability in two ways. First it places a detailed continuing emphasis on product costs through out the life cycle of every product. The management team is completely aware of costing issues since it receives regular reports from the cost accounting members of all design teams. Second, it improves profitability through precise targeting of the correct prices at which the company feels it can place a profitable product in the market place that will sell in a robust manner. This is opposed to the more common cost-plus approach under which a company makes a product, determines its cost, adds profit to cost and then does not understand why its resoundingly high price does not attract buyers. Thus, target costing results not only in better-cost control but also in better price control. A company's strategy can also have its impact on profitability. If it constantly issues a stream of new products, or if its existing product lines are subject to severe pressures, it must adapt target costing a central part of its strategy so that the correct prices are used for products and actual costs match those originally planned.
CASE STUDY:- "MONTCLAIR PAPER MILL'S"
Montclair Paper Mill 1 is the oldest and smallest of the ten paper mills. The mill's huge paper machines are some of the oldest in the industry but being well maintained they still run well. The Montclair mill buys dry pulp which it converts into coated and uncoated fine paper for premium applications such as brochures catalogues magazines annual reports and labels. While developing viable strategies for Montclair's 1500 products its managers strive to exploit the mill's strengths and available market niches. Montclair's machines are 200 feet long and 20 feet wide. They differ in width and speed which determines capacity. The machines can produce various colours weights and grades of paper depending on pulp mix additives machine design, machine settings.
Abstract:
Target Costing is a disciplined process for determining and realizing a total cost at which a proposed product with specified functionality must be produced to generate the desired profitability at its anticipated selling price in the future. CIMA defines target cost as "a product cost estimate derived from a competitive market price. Target Costing is a disciplined process that uses data and information in a logical series of steps to determine and achieve a target...

Find Another Essay On “MONTCLAIR PAPER MILL'S EXPERIMENT WITH TARGET COSTING” – A CASE STUDY

Case Study on a Three Year Old With Bronchiolitis

2035 words - 9 pages Introduction: This paper will discuss a case study of Liam, a three-month-old boy who is transferred from the General Practitioner (GP) to paediatric ward with bronchiolitis. Initially, Liam’s chief health issues will be identified, following by nursing assessment and diagnoses of the child’s need. Focus will be made on the management of two major health problems: respiratory distress and dehydration, and summary and evaluation of the

Case Study of a Patient with Periodontal Disease

2299 words - 10 pages HD CASE REPORT Introduction: A 39 years old male adult attended for a regular 6 monthly dental check up and routine scaling. The patient reports to suffer from anxiety, he is a teacher, a non-smoker, non-drinker and a regular dental attender. On his initial examination dated 23/06/13 the patient was seen for a routine full mouth scale and polish with reinforced oral hygiene instruction including flossing technique. He presented with

Case study on birch paper company with regard to transfer pricing

1087 words - 4 pages cost if all transfer prices within the company were calculated at costs. Incurring the lowest costs would also enable Birch Paper Company to earn the highest profits possible.2. As alternatives for sourcing exists, Mr. Kenton should be permitted to choose the alternative that is in Northern division's own interests. The transfer price policy gives him the right to deal with either insiders or outsiders at his discretion. If he is unable to get a

Birch Paper Company - Case Study

1729 words - 7 pages To: Commercial Vice PresidentBirch Paper CompanyAlthough the current financial implications for Birch Paper Company are not substantial, as the contract in question is less than 5% of the volume in any division, it is imperative that Birch Company establishes and addresses its transfer price policies and procedures with each division. This will ensure that the divisions are not putting their objectives ahead of the Company's and as a result, not

Fast Food Case Study Paper

1276 words - 5 pages to go with little or no preparation time. Most individuals' would also expect the food to be at the same consistency.How are the in-store orders taken? In the case of McDonald's, the orders were taken, repeated back to the customer then fulfilled by the clerk. In the case of Jack in the Box, the orders were taken twice, then repeated back to the customer, left many customers' waiting for his or her food while they watched the clerk running around

Prada: A Case Study

3344 words - 13 pages brands (Prada Case Study, 2012). By selecting to acquire brands that shared the established characteristics of Prada as a high quality, hand crafted, European manufactured, Prada was able to reinforce the image of the Prada brand by maintaining consistency across its product offerings. By aligning its decisions around “fit” Prada has been able to benefit from a strong brand protection and has been able to succeed with a successful marketing

Amazon.Com; A Case Study

1060 words - 4 pages IntroductionThe lunched of Amazon.com in July of 1995 was the creation of a new and bold way of doing business on the Internet. Amazon.com forced the traditional physical world brick and mortar retailer in the book industry to change the way they target the industry's consumers and then epitomized Business-2-Consumer e-retailing. Although, Amazon.com started as an online bookstore, according to eRetailNews 2000-11, ISSN; 1529-2959, they have

Depression: A Case Study

2122 words - 8 pages Case Study # 1 A hospital was encouraged strongly by a husband that his wife mental status warren assessment. Therefore, the woman was hospitalized voluntarily for depression. The husband provided information to the hospital on the women’s current state because the woman has failed to display coherent behavior and effectively communicate with personnel at the time of admission. At the onset of assessment by a staff-counseling

its a case study

1630 words - 7 pages Case History Case History History of Zong Introduction Paktel PT Pasifiktel Indotama, ("PAKTEL"), was introduced in the Republic of Indonesia in 1995. PAKTEL provides corporate telecommunication network services pages, to see the broad scope of our solutions for your communication needs. PAKTEL shareholders and staff provide a strong foundation with extensive

Personal Case Study of a Child with Frequent Physical and Verbal Agression

1497 words - 6 pages is expected - Offer altervatives/choices To new skill: - Social Acknowledgement/Compliments - Specific descriptive praise - Positive reinforcement Implementation Checklist 1- Seldom 2- Occasionally 3- Consistently Practices and Indicators 3 2 1 Target for Training? Y/N Observations/Evidence Adults follow the child’s lead when engaged in interaction (e.g., adults talk about what the child is doing, interact with the child around a toy or play

Case study with E-P-O

994 words - 4 pages that the completion of the report will produce the desired outcome (P to O expectancy). Although the winning of a case is not determined entirely by the paperwork, it is still the major factor. Employees must be convinced that job performance will be measured accurately and higher performance will result in higher reward. Since the paperwork is all individual work, rewards must be based on individual performance outcomes and goals. Therefore, the

Similar Essays

“Montclair Paper Mill's Experiment With Target Costing” – A Case Study

2293 words - 9 pages Please cite this Article as : , TARGET COSTING" - A CASE STUDY : Tactful Management Research Journal (Oct ; 2013) KISHOR NIVRUTTI JAGTAP "MONTCLAIR PAPER MILL'S EXPERIMENT WITH Tactful Management Research Journal KEYWORDS: Montclair Paper , organization , management , Manufacturing management . INTRODUCTION Target costing affects profitability of an organization depending on the commitment of management to its use, the constant involvement of

Pediatrics Case Study Paper: The Case Of The 12 Year Old Boy Who Presented With A Head Trauma

3433 words - 14 pages A.B is a 12 year old, male who presented to the W.C.H.C E.R. department on August 24, 2005 via EMS for a head injury, that was caused by a collision with a car while he was riding his bicycle. He also had a neck appliance/brace, and a large area of bloody hair on the left side of his head, from a laceration he obtained from the accident.Disease Process.A head injury is any trauma that leads to injury of the scalp, skull, or brain. These injuries

A Case Study Of A Student With Special Needs

1478 words - 6 pages Case Summary Background It was observed a 5th grade elementary student, that for privacy we will name him J during this case study. He arrived to the school in the second semester of Fourth grade and he has being diagnose under the umbrella of the Autism spectrum from the previous school documentation. J was served by the Especial Education content Mastery (“as known Especial Ed. Classroom”) in period of times during the day, but he was place

Case Study Of A Child With Aggressive Behavior

2436 words - 10 pages Case studies are a collection of data obtained using various methods gathered on an individual or group to record areas of interest in order to assist with analysis and provide recommendations. The study should include the name of the person, although this should be protected to provide anonymity where appropriate, and a brief description of the subject. The setting where the study is to be performed should be included. The aim of the