Imagine that you are the manager of a large bank. Havingheard about a management accounting method called target costing,you are wondering whether it can be applied to the bankingindustry. In particular, you are trying to detemine how tobenchmark other organizations to gain more information.

a. Can target costing be applied to the bankingindustry? To what products or services can target costing beapplied?

b. Devise a benchmarking plan for the bank. Yourplan should include which bans to benchmark with and the kinds ofinformation sought.