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Target costing as a strategic cost management tool in the South African motor industry

Traditional cost-accounting approaches have served manufacturers well over a long period, but due to the changing nature of the modern manufacturing environment shortcomings have resulted and are no longer regarded as suitable (Gagne & Discenza 1993: 68). Similarly, Monden and Lee (1993: 22) state that many practitioners and academicians have questioned the effectiveness of standard cost systems, which have been used as the primary cost control measure for the last several decades. Cooper and Slagmulder (1997: 2) point out that in contrast to the conventional cost management techniques, target costing adopts a feed-forward approach. The objective of target costing is to design costs out of products, and not to find ways of eliminating costs after the products enter production. Few firms can afford to ignore such a powerful mechanism to increase profits in today’s highly competitive environment.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8974
Date January 2010
CreatorsSlater, Michael, M A
PublisherNelson Mandela Metropolitan University, Faculty of Business and Economic Sciences
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MA
Formatix, 144 leaves ; 31 cm, pdf
RightsNelson Mandela Metropolitan University

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