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Khawarizmi has decided to hire Burj, a consultant, to review the situation and to implement any changes that are needed. After two weeks of review, discussion and analysis, Burj suggested that AW adopt a just-in-time (JIT) system to help reduce costs. He also suggested that using target costing would help in meeting the new target selling price of RM300. Dikehendaki/Required: (a) 'Kos sasaran tidak membawa kepada pengurangan kos, apabila ia adalah semata-mata hasil daripada penetapan harga jualan sasaran dan margin keuntungan sasaran'. Berikan maklumbalas kepada pernyataan ini. 'A target cost cannot lead to cost reduction, when it is simply the outcome of setting a target selling price and a target profit margin'. Provide a response to this statement. ( 4 markah/marks) (b) Dengan merujuk kepada Astronomy Wonders (AW), tentukan kos sasaran AW seunit dengan mengandaikan bahawa margin keuntungan semasa tidak berubah. With reference to Astronomy Wonders (AW), determine AW's target cost per unit assuming that the current profit margin remains unchanged. ( 2 markah/marks) (c) Jika sistem JIT digunakan, adakah AW mencapai kos sasaran? Terangkan. If the JIT system is implemented, will AW meet the target cost? Explain. (4 markah/marks) (d) Jelaskan tiga (3) faedah sistem JIT. Describe three (3) benefits of a JIT system. (6 markah/marks) (e) AW telah memilih untuk menggunakan konsultan untuk menjalankan semakan kos. Terangkan dua (2) faedah dan dua (2) keburukan penglibatan konsultan seperti itu. AW has chosen to use a consultant to undertake their cost review. Explain two (2) benefits and two (2) weaknesses from engaging such consultants. (4 markah/marks) Total costs to orodice sell and service the binocular Der unit are as follows: Khawarizmi, managing director of Astronomy Wonders (AW), is concerned about the prospects of one of its major products. He has been reviewing a marketing report with Bukhara, marketing project manager, for their binocular. The report indicates a price reduction is needed to meet anticipated competitors' reductions in sales price. The current selling price for their binoculars is RM350 per unit. It is expected that within three month AW's two major competitors will be selling their binoculars for RM300 per unit. This concerns Khawarizmi, because the current cost of producing the binoculars is RM315, which yields a RM35 profit on each unit sold. By changing to a JIT manufacturing system, AW expects that material handling, inspection and finished good warehousing will all be eliminated. However, the cost of other manufacturing activities will increase by 10 percent due to more highly skilled labour. Customer service costs are expected to be reduced by 50 percent

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