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.,...

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...