1. As a Cost and Management Consultant in the banking industry in Ghana, one of your highly esteemed clients, a top tier banking institution in Ghana has required of you to advise them as to
whether target costing can be applied to the banking industry in Ghana. They further require you
to advise them on what products or services can target costing be applied.

2. 1
What forces have caused cost and management accounting systems designed decades ago to
become less relevant and less valuable for organizational employees in today’s globally
competitive environment?

Answer and Explanation:

The explanation is shown below:-

1. Goal costing is a form of administration with the main emphasis on reducing costs to a set value. Upon targeting the administration front pick the desired value of trading and benefit perimeter, then evaluate the price to achieve this desired cost of trading and benefit perimeter. This then handles all the tasks needed to meet these planned costs. The key aim of goal costing is the company match, the selling price is the consumer price always, and the profit is reduced by the way out.

Target costing for all units can be applied. And to the banking sector in Ghana as a whole, it can be applied. Target costing may be used in the banking division to reduce the expense of service delivery. The full use of bank sources such as deposits, ATMs, money tellers, etc. can be made here.

To most important services such as credit cards, savings, ATM facilities, Internet banking, etc, goal costing can be enforced. The bank must be able to sell the aforementioned services at the same price in the sector and should discover methods to reduce the value to a target price using normal costs. Internet banking gateways, for example, can be outsourced on a central level to minimize costs, ATMs can be further established via ties between previously operated banks.

2. 1 Established decades earlier, the cost and management accounting systems are known as conventional cost control.  

Modern cost control has many drawbacks as a result of which companies have to switch to the new cost and accounting control system known as strategic cost management

Some of the factors that make the management of conventional costs less important and less efficient in today's globally competitive environment are as follows:

a. Concentrate on short term targets.

b. Cost management & quality containment is the primary goal.

c. A reactive approach to commodity cost analysis.

d. Although reducing costs, the results could eventually result in fewer goods being delivered.

e. The nature of today's market is too easy to manage.

f. This will not adequately distribute indirect costs which are the main costs in the scene today.