This CPE course is broken into two parts, Part I: Costing Techniques and Part II: Learning Curves. Part I examines the target costing approach which is a form of life-cycle costing and is a pro-active cost control system. This part defines target costing and covers topics such as, using target cost in the concept and design stages, and target costing for existing products. It includes several scenarios to apply your understanding of target costing and cost gap, the value chain, and life-cycle costing. In addition, this part explores value analysis and value engineering, and functional analysis.
Part II, not only includes a background on learning curves, but it explores logarithms and contains multiple illustrations. In addition, this part examines when general conditions for a learning curve apply as well as experience curves, which are similar to learning curves but they cover all costs, not just labor costs.
Course provided by AICPA