Detailed CT

COST TABLES (CT) this is a cost management tool drug abused to equivalence between different providers and their costs and an organizations crossroadion cost with that of an external organisation. (Yoshikaw, Innes and Mitchell, 1990) gave an depth psychology of the uses and diversity of CT. CT could be summarized or detailed.The detailed CT are make by advance Technology, analysing and comparing the what ifs. The outcome of the analysis concludes a make or buy decision. This takes place within the VSC (the powerhouse for decision making in the chain to alter it access cost of suppliers).COST SPLIT-UP (CSU) This can also be referred to as cost analysis. Organizations making use of CSU build trust within themselves (the configurator and the partners). This model enables the supplier to make cost calculations found on the buyers specification. The buyer gets insight into the breakdown of the cost at each stage of activity. In reference to (Bromwich, 1989), cost analysis is an ess ential component of SMA and IOMA. CSU is used more by organizations already implementing Porters 1985 low cost strategy.STRATEGIC COSTING (SC) AND VALUE CHAIN COSTING (VCC) According to prow and Govindarajan, (Guilding, Gravens and Tayles, 2000) is used to ascertain how strategically attractive an organization stands in the future. Strategic and market information are the main source of data to be analyzed. The use of Value Chain Costing is for the back- up activities (design R&D, HRM) and core activities (logistics, production, market and services) are attached a cost.STRATEGIC PRICING (SP) Referencing (Guilding, Cravens and Tayles, 2000), the initiators of SP, determiners like opinions on competitors damages and price elasticity, market growth economy of scale and experience are all appraised. This model is connected to markets and revenue.TARGET COST (TC) according to (Ellram, 2002) in (Miguel, Martinez and Ramos, 2004), TC should entangle the production and procurement expenses incurred in a product or service. This cost can be broken down into cost of production, operating cost (marketing, gross sales RD) and purchases cost. TC has three main points of focus estimation of selling/service price based on the product attribute, calculation of TC based on targeted profit and establishing a previous TC.VALUE ANALYSIS (VA) this has to do with the customer and customer value. This process describes the transformation of cost to revenue, reflecting what the customer is willing to chip in for a value. According to (Ellram, 1996), organizations need not acquire cost for values a customer does not crave for. (CIMA, 1996, p.34) An evaluation of determinants influencing the cost of a product with a mindset of creating valve at a minimum cost with focus on reliability and quality as features.