• Journal of Korean Society for Quality Management
• /
• v.31 no.3
• /
• pp.1-18
• /
• 2003

Target Costing research has a long history in the study of management control systems. However, there is very little published empirical analysis studies on Target Costing. This study investigate the impact of Target Costing practices on organizational performance. This study uses survey responses from executive at 125 Target Costing practicing firms to better understand the benefits that firms have experienced through Target Costing adoption and whether a more comprehensive implementation is worthwhile. The research results demonstrate that Target Costing has a positive and significant relationship with low cost, efficiency of R&D, and interaction facilitation. In particular, there is significant and positive relationship between organizational structure and performance. This study indicate that Target Costing is a vital management strategy to build and sustain competitive advantage.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.35 no.2
• /
• pp.89-114
• /
• 2010

This study empirically investigated the effects of the target costing system as well as information technology(IT) infrastructure on the knowledge management processes(i.e., socialization, externalization, combination and internalization) and the performance of a firm. This study also examined an impact of the social capital(i.e., inter-departmental communication, trust, cooperation and integration) on the adoption and development of the target costing and the IT infrastructure. The results of this study showed that inter-departmental communication, trust and integration have a significant positive impact on the adoption of the target costing. It was also found that the effects of inter-departmental communication and integration on the development of storage and transfer infrastructure are significant and positive. However, in the adoption of search infrastructure, only the impact of inter-departmental integration was significant. The results of regression analyses presented that the target costing has significant influence on the four processes of knowledge management. It was also observed that the effects of storage and transfer infrastructure on combination are significant and positive. In search infrastructure, the impact on combination and internalization was significant. According to the results of this study, it was found that when the adoption level of the target costing is high, search infrastructure mainly affects the three processes(i.e., socialization, combination and internalization). However, under a low adoption level of the target costing, the impact of storage and transfer infrastructure on the whole processes was significant and positive. Thus, it is assumed that storage and transfer infrastructure complements a low level of the target costing adoption through the active transfer and sharing of explicit and tacit knowledge.

• The Journal of Information Systems
• /
• v.24 no.1
• /
• pp.45-66
• /
• 2015

This study empirically investigated the relationships among organizational culture, target costing, knowledge management activities, and corporate innovations. The results of this study showed that innovative and supportive culture positively affects the adoption degrees of target costing. According to the results, it was observed that target costing as well as innovative and supportive culture have a positive impact on levels of knowledge management activities(i.e., knowledge creation, sharing, storage, and application). It was also demonstrated that organizational culture has an indirect effect on activation of knowledge management activities through target costing. Thus, to enhance knowledge management activities, target costing must be aligned with appropriate types of organizational culture. In examining the impact of knowledge management activities on the frequencies of product and process innovations, no significant effect was found. Additional analyses that compare across three groups(i.e., low level group, middle level group and high level group in knowledge management activities) and between two groups(i.e., between high level group and middle level group or between high level group and low level group) were performed. The results of comparison showed that the degrees of product and process innovations are highest in high level group, but no significant differences are found in the degrees of innovations between middle level group and low level group.

• Journal of the Korea Institute of Building Construction
• /
• v.10 no.6
• /
• pp.137-143
• /
• 2010

Target Costing is a modern cost management technique used in changeable market conditions. The target cost is set by subtracting the sum of production costs and profits from the market price. The purpose of this present study is to review Target Costing as a useful concept which integrates the project development process with cost management. "Minimum Waste, Maximum Value" could be achieved by setting up guidelines for optimal building design at the beginning of the project development phase. This effective budget management method will help rectify Korea's overspending problems in the area of government building construction projects.

• International Journal of Quality Innovation
• /
• v.4 no.1
• /
• pp.191-204
• /
• 2003

The target costing technique, mathematically discussed by Sauers, only uses the $C_p index along with Taguchi loss function and $\bar{X}$-P control charts to setup goal control limits. The new specification limits derived from Taguchi loss function is linked through the $C_p value to $\bar{X}$-P control charts to obtain goal control limits. Studies have shown that the point estimator of the $C_p index, $C_p, could vary from time to time due to the sampling error. The suggested approach is to use confidence intervals, especially the lower confidence intervals, to replace the point estimator. Therefore, an improvement on target costing technique is presented by applying the lower confidence interval of the $C_p index and using both Taguchi and Spiring's loss functions together with $\bar{X}$-P charts to make this technique more robust in practice. An example is also provided to illustrate how the improved target costing technique works.

• International Journal of Quality Innovation
• /
• v.6 no.2
• /
• pp.31-45
• /
• 2005

The target costing technique, mathematically discussed by Sauers, only uses the $C_p$ index along with Taguchi loss function and ${\bar{X}}-R$ control charts to set up goal control limits. The new specification limits derived from Taguchi loss function is linked through the $C_p$ value to ${\bar{X}}-R$ control charts to obtain goal control limits. This study further considers the reflected normal loss function as well as the $C_{pk}$ index along with its lower confidence interval in forming goal control limits. With the use of lower confidence interval to replace the point estimator of the $C_{pk}$ index and reflected normal loss function proposed by Spiring to measure the loss to society, this modified and improved target costing technique would become more robust and applicable in practice. Finally, an example is provided to illustrate how this modified and improved target costing technique works.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.23 no.59
• /
• pp.85-95
• /
• 2000

Since the cost of a new product is determined mainly at the design stage, systematic tools to support the new product to be manufactured at the predetermined cost is very important for successful introduction of a new product. PDM is a tool to support engineers to integrate product data throughout the product development. In this paper, we introduce a prototype of PDM system which has a target costing function, where cost estimation is coupled with structured product data.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.12
• /
• pp.877-884
• /
• 2020

The main aim of the present study is to investigate the factors that are considered affecting the adoption of Activity-Based Costing (ABC) in the autonomous public universities in Vietnam. A quantitative research was carried out. The data was collected through an online questionnaire survey between June 2020 and September 2020 addressed to the target respondents comprising 168 managers and accountants from 23 autonomous public universities in Vietnam, which participated in the resolution project No. 77/NQ-CP of the Vietnamese government on the pilot renovation of operational mechanisms of public tertiary education institutions during the period of four years, from 2014 to 2017. The findings resulted from hypothesis testing by a binary regression analysis based on the SPSS 20.0 software show that training, competition, support of top manager, and university size are the four main factors that positively affect the adoption of Activity-Based Costing (ABC) in studied universities. On the other hand, no statistically significant impact was found on two other variables, namely the variety of services provided and the usefulness of cost information factors. From the research results, discussions and policy recommendations have been presented to promote the adoption of Activity-Based Costing (ABC) in Vietnamese autonomous public universities in the coming time.

• The Journal of Information Systems
• /
• v.21 no.3
• /
• pp.45-70
• /
• 2012

Based on the usage levels of target costing systems(TCS) and information technology (IT) infrastructure, this study aims to develop a framework useful for classifying four types of knowledge management(KM) strategies in manufacturing firms: process-oriented, product-oriented, mixed and negative. We adopted a multi-methodological approach by mixing both qualitative and quantitative methods. Before developing a framework, through a case study of the H Motor Company in Korea, this paper investigated and showed the functions of TCS in the management of tacit knowledge. The results from the case study indicated that with the use of TCS, a firm can create, transfer, and share diverse kinds of tacit knowledge among employees for the facilitation of process innovation. We also empirically confirmed the four types of KM strategies, and demonstrated the characteristics(i.e., size, total sales, age, and knowledge intensity) of the organizations adopting each strategy.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.36 no.2
• /
• pp.67-88
• /
• 2011

This study empirically investigated the effects of knowledge management(KM) strategic alignment on the KM activities as well as the product and process innovation of manufacturing firms. Based on the framework, which employs the usage levels of target costing systems(TCS) and information technology(IT) infrastructure, four types of KM strategies were identified and proposed：mixed, explorative, exploitative and negative strategies. In this research, these four types of KM strategies were empirically validated. According to the results of this study, it was found that when a explorative KM strategy is aligned with a low-cost strategy, KM activities are activated and the degree of a process innovation is increased. It was observed that in the case of the alignment between a differentiation strategy and a exploitative KM strategy, both KM activities and the level of a product innovation are enhanced. The results also demonstrated that for the enhancement of both a process and a product innovation through the activation of KM activities, a mixed KM strategy must be aligned with a composite business strategy, which focuses on a low-cost as well as a differentiation strategies. Accordingly, it is concluded that the KM activities and the levels of the product and process innovation can be activated or improved with the alignment of the KM strategies and business strategies.