Target costing and service organization Imagine that you are the manager of a large bank. Having heard about a management accounting method called target costing, you are wondering whether it can be applied to the banking industry. In particular, you are trying to determine how to benchmark other organizations to gain more information.

REQUIRED

(a) Can target costing be applied to the banking industry? To what products or services can target costing be applied?

(b) Devise a benchmarking plan for the bank. Your plan should include which banks to benchmark with and the kinds of information sought.

LO 3