Relationship between Target Costing Practices and Organizational Performance : An Empirical study

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Journal of Korean Society for Quality Management > Volume 31(3); 2003 > Article

Journal of Korean Society for Quality Management 2003;31(3): 1-.

원가기획시스템의 실무수준과 성과간의 관련성에 관한 실증연구

육근효

부산외국어대학교 경영학부

Relationship between Target Costing Practices and Organizational Performance : An Empirical study

ABSTRACT

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.

Key Words: Target Costing;Concurrent Engineering;Cross Functional Team;