Using Target Costing to Investigates Competitive Price

Authors: R. A. Sabir , X. Xinping , S.A. Sabr

Abstract:

This paper has presented research in progress concerning the contribution of target costing approach to achievement competitive price in the Iraqi firm. The title of the paper is one of the subjects that get large concerns in the finance and business world in the present time. That is because many competitive firms have appeared in the regional and global markets and the rapid changes that covered all fields of life. On the other hand, this paper concentrated on lack knowledge of the industrial firms, regarding the significant role of target cost for achieving the competitive prices. The paper depends on the main supposition, using the competitive price to get the target cost in the industrial firms. In order to achieve competitive advantage in business world the firms should rely on modern methods to manage cost and profit. From strategic perspective the target cost achieves a so powerful competitive advantage represented in cost reduction. Nevertheless the target cost does not exclude the calculation and survey of costs during the production process. Products- estimated costs are calculated and compared with the target costs.

Keywords: Target Costing, Competitive Price, Target Profit, Iraq Kurdistan Region.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1333999

References:

[1] O. A. Verma and N. Seth, "A Conceptual Framework for Supply Chain Competitiveness," International Journal of Human and Social Sciences 6:1 2011, p5-10.
[2] D. Bovet and Y. Sheffi, "The brave new world of Supply Chain Management, Supply Chain Management Review," Vol. 2 (spring), pp. 14-22, 1998.
[3] J.T. Mentzer, "Fundamentals of Supply Chain Management-Twelve Drivers of Competitive Advantages," University of Tennessee, Knoxville, Response books, New Delhi. 2004.
[4] W.M. Baker, "The missing element in cost management competitive target costing," Industrial Management,37(2), pp 29-32 1995.
[5] P. Feil, K.H. Yook, & I.W. Kim, "Japanese Target Costing: A Historical Perspective," 2004.
[6] M. E. Bayou & A. d. Korvin, "Measuring the leanness of manufacturing systems: a case study of Ford Motor Company and General Motors" Journal of Engineering and Technology Management, 2008.25(4): 287- 304.
[7] J. P.Womack, D. T.Jones, , & D. Roos. "The Machine That Changed the World: The Story of Lean Production" New York: Harper Perennial. 1990.
[8] L. L. Man & Y. H. Phillip. "Using target costing to manage sporting goods" International Journal of Strategic Cost Management /Volume 3, Number 2. 2009.
[9] A, H. Lockamy, & W. I. Smith. "Target costing for supply chain management:" Criteria and selection" Industrial Management & Data Systems, 100(5), 210- 218) 2000.
[10] R. Cooper & R. Slagmulder, "Target Costing and Value Engineering, Productivity Press" Portland, Oregon (USA) 1997.
[11] H. Dekker & P. Smidt"A survey of the adoption and use of target costing in Dutch firms" International Journal of Production Economics, 2003. 84: 293-305.
[12] L. M. Ellarm "The implementation of target costing in the United States: theory versus practice" Journal of Supply Chain Management, 2006. 42(1): 13-26.
[13] Y. Kato "Target costing support systems: lessons from leading Japanese companies" Management Accounting Research, 1993. 4(1): 33-47.
[14] T. Tani "Interactive control in target cost management" Management Accounting Research, 1995. 6(4):401-414.
[15] R.COOPER & R. S.KAPLAN "The design of cost management systems: text, cases, and readings" Prentice Hall. Upper Saddle River, New Jersey. 1998 .
[16] D. Swenson , S. Ansari , J. Bell, & I.W. Kim "Best practices in target costing" Management Accounting Quarterly, 2003. 4.2: 12-21.
[17] K.SMITH "Developing, marketing, distributing, and supporting, and activity based costing decision support system for Schrader Bellows", Issues in Accounting Education,2003 , vol. 18, n. 2, p. 175-189.).
[18] T. W. LIN "Target costing and incentive compensation", Cost Management, 2005: vol. 19, n. 2, p. 29-42.
[19] M.SULAIMA, N, N. N. N AHMAD & N. ALWI "Management accounting practices in selected Asian countries" Managerial Auditing Journal, 2004. vol. 19, n. 4, p. 493-508.
[20] S. A. Butsher & Milkier "Market-Driven Product Development" Marketing Management. Summer 2000, Vol. 9 Issue 2. 48-54.
[21] R. Cooper & R. Slagmulder "Develop Profitable New Products with Target Costing" Sloan Management Review. Summer 1999, Vol. 40 Issue 4. 23-34.
[22] F. Jariri_ & S.H. Zegordi "Quality Function Deployment, Value Engineering and Target Costing, an Integrated Framework in Design Cost Management: A Mathematical Programming Approach" Scientia Iranica, 2008. Vol. 15, No. 3, pp 405-411.
[23] L. Ellram "Supply management's involvement in the target costing process", European Journal of Purchasing and Supply Management, 2002 , 8(4), pp 235-244.
[24] H.R. Anderson "Managerial Accounting" 4th ed., Boston, Houghton Mifflin Company. 1996.
[25] H. Okano &,T. Suzuki "A History of Japanese Management Accounting" In C. Chapman, A.G. Hopwood and M.D. Shields, Eds. A Handbook of Management Accounting Research London: Elsevier. (2007), pp.1129-1132.
[26] C. K. Mehmet & A. D. Austill "Product development and cost management using target costing: a discussion and case analysis"Journal of Business & Economics Research. 2006.Volume 4, Number 2,p61-71.
[27] R. Banham, "Off Target? CFO " May, 2000. Vol. 16 Issue 6. 127-131.
[28] E. Klaus, K.. Alfons & L. Udo "Cost-Efficient Design" Springer-Verlag Berlin Heidelberg, 2007.
[29] R. Roslender, & S. Hart, "Marketing and Management Interfaces in the Enactment of Strategic Management Accounting Practices: An Exploratory Investigation". London: CIMA. 2002.
[30] E. Blocher, K. Chen & T. Lin, "Cost Management: A Strategic Emphasis" The McGraw-Hill Companies, Inc., New York), 1999.
[31] R. Cooper "When Lean Enterprises Collide. Competing through Confrontation" Harvard. 1995.
[32] Y. MONDEN & K. HAMADA "Target Costing and Kaizen Costing in Japanese Automobile Companies" Journal of Management Accounting Research, Fall 1991, p. 16-34).