Purpose This paper examines how target costing decisions can be impacted by product and production interdependencies. Design/methodology/approach Numerical examples are used to investigate the effect that product and production interdependencies have on target costing decisions. Mixed integer...

For firms using target costing, separating decision management from decision control helps to minimize the agency costs incurred throughout a product's economic life. Prior literature focuses on decision-management issues related to target costing, such as new product development (i.e.,...

In managerial accounting courses, students lacking business experience find the balanced scorecard (BSC) an inherently difficult topic to understand. Students may lack an understanding of business strategy, the BSC's perspectives, and the measures that a BSC uses to report performance. This...

Accounting educators continue to look for efficient ways to introduce personal competencies into the curriculum. Prior literature contains numerous suggestions on how faculty can implement a single personal competency, such as written communication. This chapter describes our strategy for...

Target costing is a cost management system designed to develop products with a level of profitability deemed adequate to justify their production. This paper examines whether production-related decisions made with target costing consistently add economic value to the firm. A traditional target...

Product mix and the acquisition of the assets needed for their production are interdependent decisions. However, these decisions are frequently evaluated independently of each other and with conceptually different decision models. This article expands activity-based costing (ABC) to incorporate...