This book provides practical insights on how to use target costing for profit planning and cost management.
|Authors: The CAM-I Target Cost Core Group & Profs Shahid Ansari & Jan Bell
This book provides practical insights on how to use target costing for profit planning and cost management. The purpose is to show that target costing is a management method that allows firms to provide customers with products that they want, when they want them, at a price they can afford, and still earn adequate financial returns.
The book extends the existing knowledge base by focusing on the details of how target costing works in practice. The authors relied on state-of-the-art practices drawn from translations of papers available only in the Japanese language and the collective experience of several world class companies: Arthur Andersen LLP, The Boeing Company, Chrysler Corporation, Eastman Kodak Company and Texas Instruments.
Materials in this book are not currently available in the English language business literature. Practicing managers will find that this document contains a balance between general concepts and technical information required for their application. Examples from industry are used to illustrate important issues and current practice.
Key topics in the book include:
1. How target costing relates to business strategy and profit planning
2. A process model that links target costing with the product development cycle
3. The linkages between customer requirements and costing
4. Tools, information and measurement systems required to support target costing