This paper applies the new method of associative costing (Bayou & Reinstein, 2000) that does not contain these limitations. To simplify the intricate procedures of this method, the paper outlines and illustrates nine steps and applies them to a hypothetical scenario, a design of a laptop computer intended for the college-student market. This method uses the well-known statistical techniques of clustering, Full Factorial design and analysis-of-variance. It concludes that in product design programs, the design team may need to make tradeoff decisions on a continuum beginning with the design-to-cost point and ending at the cost-to-design extreme, as when the best perceived design and the acceptable cost level of this design are incongruent.
Bayou, M.E. and Reinstein, A. (2004), "ACCOUNTING FOR COST INTERACTIONS IN DESIGNING PRODUCTS", Advances in Management Accounting (Advances in Management Accounting, Vol. 12), Emerald Group Publishing Limited, Bingley, pp. 151-170. https://doi.org/10.1016/S1474-7871(04)12007-8
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