1 What is a just–in–time manufacturing system? Why would organizations choose to adopt it?
2 Explain the similarities and differences among target costing, kaizen costing, and life cycle costing.
3 Identify three products for which target costing and kaizen costing could be used. Identify three products for which target costing and kaizen costing would be inappropriate.
4 Explain the value chain and list the ways that value chain analysis benefits organizations.
5 Explain the target costing cycle, and discuss the decision criteria used to determine whether a product will be
manufactured using a target costing approach.
6 Explain cost–based pricing and give an example that shows how prices would be determined using this method.
7 Explain market–based pricing and explain where managers and accountants can find information that would help them
set prices using this type of approach.
8 Supply chain analysis focuses particularly on one aspect of value chain analysis. Explain how supply chain analysis is
performed and how it relates to value chain analysis.
9 List some common advantages and disadvantages for target and kaizen costing.
10 If fixed costs are included in the marked up costs used in setting cost–based prices, a problem may occur when demand
declines. Describe this problem.
11 Explain why not–for–profit organizations do not always set prices so that their operating costs are recovered.
12 List three ways that accounting functions can be improved under a lean accounting system.
13 What is value stream analysis and why do organizations use it?
14 Why is NPV used for life–cycle costing but not for target or kaizen costing?
15 Describe the use of lean accounting applied to cellular manufacturing teams.
