Target Costing for services

Target Costing for Services - HandbookCONTENTDEFINITION ................................................................................................................................ 3Step 1: Design of the service.................................................................................................. 5Step 2: Definition of Target Costs for the service .................................................................. 5Definition of Allowable Costs ............................................................................................. 6Optimization of the Drifting Costs ..................................................................................... 7Step 3: Division of Target Costs ............................................................................................. 8Categorization of processes ............................................................................................... 9Process cost calculation ..................................................................................................... 9Step 4: Simultaneous attainment of target costs and quality costs .................................... 12Attainment of target costs in the frame of development and construction ................... 12Attainment and improvement of target costs during the market cycle .......................... 12LITERATURE ............................................................................................................................. 14Copyright © 2009 by the authors.No part of this publication may be reproduced or transmitted in any form or by anymeans without the prior permission of the authors.2