Managerial implications of target costing

Helms, Marilyn M.; Ettkin, Lawrence P.; Baxter, Joe T.; Gordon, Matthew W.

doi:10.1108/10595420510818696

Cited by 24 publications

(29 citation statements)

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“…As TCM is related to product planning and development, some studies agree that TCM is a part of new product development (NPD) (Ansari et al, 2007;Everaert et al, 2006;Helms et al, 2005).…”

Section: Literature Review Target Cost Management (Tcm)mentioning

confidence: 99%

“…Basically, TCM is based on price-driven costing or market-driven concept (Ansari et al, 2007;Gagne & Discenza, 1995). According to Japanese TCM theoretical model, the targetselling price is determined by the market thorough comparison of competitive products before the product is being designed (Helms et al, 2005). Then, the target cost is calculated by deducting the target profit from the target-selling price (Ellram, 2000).…”

Section: Literature Review Target Cost Management (Tcm)mentioning

confidence: 99%

“…This helps companies to determine the right price and right cost as well as reduce the risk of not making sufficient profit (Helms et al, 2005;Tani et al, 1994). Additionally, since TCM starts in the upper stream of production stage (Monden & Hamada, 1991;Sakurai, 1989), any design changes are less costly (Kato, 1993).…”

Section: Literature Review Target Cost Management (Tcm)mentioning

confidence: 99%

“…Additionally, since TCM starts in the upper stream of production stage (Monden & Hamada, 1991;Sakurai, 1989), any design changes are less costly (Kato, 1993). This helps to avoid time and resources lost in design changes due to over engineering countermeasures to fit the market requirements after the product is introduced to the market (Helms et al, 2005;Kato, 1993).…”

Section: Literature Review Target Cost Management (Tcm)mentioning

confidence: 99%

“…Therefore, factors such as strategy, organization structure, and environment that are specific to the industry may influence the nature of TCM being implemented (Feil et al, 2004;Tani et al, 1994). As rule of thumb, TCM implementation requires involvement from the whole value chain to achieve the target cost by eliminating the nonvalue added cost, excess and unevenness (Helms et al, 2005).…”

mentioning

confidence: 99%

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Enablers of Target Cost Management Implementation: Evidence from Malaysia

Baharudin¹,

Jusoh²

2020

Journal of Accounting and Business Dynamics

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This paper examines the enablers that influence the implementation success of target cost management (TCM) in the Malaysian context. A single case study was carried out at an automotive company in Malaysia. Using the innovation diffusion theory, this paper explains the key enablers that may influence the successful implementation of TCM in the Malaysian context by conducting a survey and interviews within the case company. The findings show that only teamwork, top management support and commitment, and training are the significant enablers for the successful implementation of TCM in the case company. This study provides an initial understanding of the critical factors that influence the successful implementation of TCM in the Malaysian context. The findings suggest that priority should be given to human-related factors, such as teamwork, top management support, and training to support TCM practices. As the findings are based on a single case study, the findings are of more relevance when the intention is one of particularization. Teamwork has contributed to the successful implementation of TCM in the case company because it is under a joint-venture agreement with a Japanese company. Employees tend to be more disposed to some aspects of Japanese culture, such as high in collectivism.

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“…As TCM is related to product planning and development, some studies agree that TCM is a part of new product development (NPD) (Ansari et al, 2007;Everaert et al, 2006;Helms et al, 2005).…”

Section: Literature Review Target Cost Management (Tcm)mentioning

confidence: 99%

Section: Literature Review Target Cost Management (Tcm)mentioning

confidence: 99%

Section: Literature Review Target Cost Management (Tcm)mentioning

confidence: 99%

Section: Literature Review Target Cost Management (Tcm)mentioning

confidence: 99%

mentioning

confidence: 99%

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Enablers of Target Cost Management Implementation: Evidence from Malaysia

Baharudin¹,

Jusoh²

2020

Journal of Accounting and Business Dynamics

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Multi-objective optimization approach for cost management during product design at the conceptual phase

Prasad¹,

Subbaiah

Rao³

2014

J Ind Eng Int

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The effective cost management during the conceptual design phase of a product is essential to develop a product with minimum cost and desired quality. The integration of the methodologies of quality function deployment (QFD), value engineering (VE) and target costing (TC) could be applied to the continuous improvement of any product during product development. To optimize customer satisfaction and total cost of a product, a mathematical model is established in this paper. This model integrates QFD, VE and TC under multi-objective optimization frame work. A case study on domestic refrigerator is presented to show the performance of the proposed model. Goal programming is adopted to attain the goals of maximum customer satisfaction and minimum cost of the product.

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