File(s) not publicly available
Target costing implementations in Australian companies : an exploratory study of current corporate practice and strategic intent
conference contributionposted on 06.12.2017, 00:00 by Mohammed ZamanMohammed Zaman
This paper investigates the current and future prospects of Target Costing (TC) in Australia. A survey of 50 top Australian companies shows that only 12.5 percent of companies have implemented target costing and 30 percent of companies are planning to implement it in the future. The results indicate that it is not prudent to implement TC prior to adopting activity-based costing. The results also indicate that, among other things, a poor understanding of TC by many Australian corporate managers may have led to its low implementation in their firms. However, results are inconclusive as to whether managers and accountants' understanding and beliefs about TC will lead to its actual implementation. There is also inconclusive evidence as to whether Australian companies are likely to adopt TC as a strategic posture to achieve cost competitive benefits. The paper ends with limitations and policy implication.