For financial control and successful marketing it is necessary to have cost targets and realisations throughout the product introduction process. Product cost is virtually always a prime element in decision-making in the manufacturing industry. The main problem in product introduction is the provision of reliable cost information in the early stages of the design process, for the comparison of alternative conceptual designs and assessment of the myriad of ways in which a product may be structured during concept development.
Cost estimates are needed to determine the viability of projects and to minimise project and product costs. The inadequate nature of the historical standard costing methods and ...