A survey of the adoption and use of target costing in Dutch firms

Dekker, Henri C.; Smidt, P.

doi:10.1016/s0925-5273(02)00450-4

Cited by 125 publications

(121 citation statements)

References 15 publications

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“…This was confirmed by the research conducted by Dekker and Smidt (2003), which included all Dutch production companies listed on the Amsterdam Stock Exchange. The study also included all nonmanufacturing companies (excluding financial and insurance companies) with an aim to test the hypothesis that TC cannot be applied to that category of companies.…”

Section: Target Costingsupporting

confidence: 55%

Investigation of the relationship between contemporary cost management methods and improvement in financial performance

Mijoč

Starčević

Mijoč

2014

Economic Research-Ekonomska Istraživanja

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Section: Target Costingsupporting

confidence: 55%

Investigation of the relationship between contemporary cost management methods and improvement in financial performance

Mijoč

Starčević

Mijoč

2014

Economic Research-Ekonomska Istraživanja

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“…Wijewardena and de Zoysa (1999) perform a comparative analysis of cost management in Japan and Australia and find that several Australian companies apply TC as cost planning method. Dekker and Smidt (2003) survey the use of TC by Dutch firms, and Ellram (2006) investigates the TC practices in the US and highlights the more frequent implementation of TC in R&D and supply chains contrary to assertions of previous works. Based on Ellram (1999), we derive the six-step application of TC to the design of lignocellulosic ethanol pathways (Fig.…”

Section: Target Costing (Tc) With or Without Vementioning

confidence: 99%

Techno-economic analysis of lignocellulosic ethanol: A review

Gnansounou

Dauriat

2010

Bioresource Technology

381

202

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a b s t r a c tLignocellulosic ethanol is expected to be commercialised during the next decade as renewable energy for transport. Competiveness with first generation bioethanol and with gasoline is commonly considered in techno-economic analyses for commercial stage. Several existing reviews conclude about the high spread of current and projected production costs of lignocellulosic ethanol due to the significant differences in assumptions concerning the following factors: composition and cost of feedstock, process design, conversion efficiency, valorisation of co-products, and energy conservation. Focusing on the studies in the United States of America and in Europe, the present review investigates the different natures of the techno-economic evaluations during the development process of the supply chain i.e., standard costing with respect to Value Engineering, and Target Costing based on the projected market price. The paper highlights the significant contribution of feedstock to the lignocellulosic ethanol production cost and the need to consider competition between different uses for resources. It is recommended the use of a value-based approach that considers sustainability characteristics and potential competition for resources complementarily to Target Costing and Value Engineering.

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“…5; In addition, along with the difficulty to share suppliers to provide earlier estimation of product selling price, TC follow-up activities to reduce product cost by change product specifications in stage 5 is another most difficulty found to be implemented. Interestingly, the easiest item at the down end of the scale "S1b_identify customers' expectations before design stage" (Mean = -0.89 logit, see Table 4.15) supports the TC literature indicating that the first stage of TC implementation is identification of products and services characteristics based on the marketplace requirements and customers' expectations before production process to be launched (Ansari & Bell, 1997;Cooper & Slagmulder, 1997;Cooper, 1995;Dekker & Smidt, 2003;Feil et al, 2004;Hamood et al, 2011;Kato, 1993). In addition, review of product characteristics when the market changes occur (stage 1) and Kaizen Costing application (stage 6) are measured in line with the item mean of 0.00 logits.…”

Section: Fit Statisticsmentioning

confidence: 74%

Using the Rasch Model to Measure Malaysian Companies’ Capabilities toward Target Costing Implementation

Sharaf-Addin¹,

Omar²,

Sulaiman³

2015

ASS

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Target Costing (TC) has been widely known as a cost management technique to manage product costs during the earlier stages of product life cycle. This study aims to measure Malaysian companies' capabilities towards TC implementation stages associated with industry type and company strategy effectiveness. Among 380 Malaysian automotive companies, 48 were involved in filling the questionnaire which includes six constructs representing the six common stages of TC implementation adapted from Ellram's (2006) theoretical model. Rasch Measurement Model (RMM) was used to analyze the data collected. The results revealed acceptable ability for the responding companies towards TC implementation stages especially Car makers and when employing the Confrontation strategy, except some capabilities required to follow-up TC activities in achieving cost reduction objective. All the six stages had different level of implementation difficulty, stage 5 (closing the gap between allowable target cost and estimated costs) was the most difficult stage while stages 3 (Computation of products' allowable target cost) and stage 1 (identify product characteristics) were the easiest ones. Suppliers' involvement in providing alternative design was most difficult, whereas identify customers' expectations before design stage was the easiest one to be implemented. The study has provided evidence on TC implementation in Malaysian context and added a new idea to the knowledge regarding the useful usage of RMM in management accounting research.

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A survey of the adoption and use of target costing in Dutch firms

Cited by 125 publications

References 15 publications

Investigation of the relationship between contemporary cost management methods and improvement in financial performance

Investigation of the relationship between contemporary cost management methods and improvement in financial performance

Techno-economic analysis of lignocellulosic ethanol: A review

Using the Rasch Model to Measure Malaysian Companies’ Capabilities toward Target Costing Implementation

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