Managerial Accounting Standard Costing Assignment

Running Head: MANAGERIAL ACCOUNTING
MANAGERIAL ACCOUNTING
Name of the Student
Name of the University
Author Note

MANAGERIAL ACCOUNTING1
Reflection on standard costing
The cost analysis of steel gear manufacturing will help in estimating the future
strategies of the manufacturing process. Scenario testing method will help in improving the
strategies in controlling and monitoring the cost of the vehicle industry. The cost of drivers
can be estimated by the case company model through standard costing method. Increasing the
rate of production, reducing the labour cost & time gap can also be done using this costing
system. But, this method did not go well in improving the cost and finding accurate measure
of cost of product price and cost of drivers (Kianian and Andersson 2018). The
manufacturing model of gear manufacturing company and proposed standard cost model did
not provide a sufficient clarification of the effectiveness of the overall Equipment. The cost
of Overall Equipment Effectiveness is higher in case of proposed model, but is not present in
the manufacturing model of the company. I can address the difficulties by enhancing a depth
knowledge in proposed model to support a proper information that can help the management
in developing the production scenarios and properly analyse and planning to improve the
performance of the manufacturing vehicle.
Reflection on target costing
From the article I have learned that, target costing is very much essential in product
innovation and technological development. This costing system is helpful in achieving a
competitive position in the environment. In today’s business environment like automation
sectors, target costing is helpful in improving the business performance. This costing system
is helpful in product life cycle stage. It helps in doing value analysis to increase the business
profitability (Potkany et al. 2017). This costing techniques helps the management in making
decisions regarding the product planning in long-term perspective of the business. But, one of
the disadvantage of using this technique is, it doesnot help to reduce the cost of the