scholarly journals Research into Customer Preferences of Potential Buyers of Simple Wood-based Houses for the Purpose of Using the Target Costing

2019 ◽  
Vol 9 (1) ◽  
pp. 390-396 ◽  
Author(s):  
Marek Potkány ◽  
Monika Škultétyová
Keyword(s):  
Target Costing ◽  
Target Price ◽  
Cost Index ◽  
Specific Product ◽  
Customer Preference ◽  
Wood Processing ◽  
Customer Preferences ◽  
Target Cost ◽  
Timber Constructions ◽  
Specialized Exhibition

AbstractThe purpose of this paper is to present the results of a research into the customer preferences of potential buyers of simple wood-based house for the purpose of using the Target Costing methodology. Respondents’ opinions of 280 customers were obtained through direct interviews taking place at a specialized exhibition of furniture and timber constructions in Slovakia. The object of the research was a simple wood-based house, namely a weekend garden cottage, made of northern spruce at the level of target price 9,320 €. The paper contribution is represented by the use of the Target Costing methodology in the conditions of wood-processing industry while defining the customer preference for a specific product with the subsequent use for a functional cost analysis and determining the target cost index of the evaluated components. Presented results can be used as information database for decision making in the field of make or buy decisions at the level of fixed purchase prices of individual components or as the upper price limit for producing the components by the business itself.

scholarly journals Factors influencing the target costing process

2014 ◽  
pp. 141-149 ◽  
Author(s):  
Vilius Savickas ◽  
Julija Šarupičiūtė
Keyword(s):  
Negative Influence ◽  
Target Costing ◽  
Target Price ◽  
Related Factors ◽  
Customer Preferences ◽  
Factors Influencing ◽  
Organizational Functions ◽  
Target Cost ◽  
Cost Planning

The article presents principles of defining target price, target profit and target cost and conjoint concept of target costing process. Functions, performed by employees and departments of an organization during the target costing process are defined. The main direct and indirect factors influencing the determination of target cost and target costing process are proposed. Based on the analysis of literature it is stated, that organizational functions that play an important role in the process of target costing are strategic management, marketing, engineering and manufacturing and cost planning and accounting. The level of influence of target costing related factors can differ, however to achieve cost reducing goals organization should pay attention to customer preferences, supplier abilities, the negative influence of competitors, technological production experience and previous  profitability.    

Application of Target Costing and Performance Analysis: Evidence from Indian Automobile Industry

2021 ◽  
Author(s):  
NARSAIAH NERALLA ◽  
Keyword(s):  
Firm Size ◽  
Negative Relationship ◽  
Manufacturing Companies ◽  
Target Costing ◽  
Target Price ◽  
Product Price ◽  
Convenience Sample ◽  
Positive Correlation ◽  
Application Procedure ◽  
Return On Sales

The manufacturing companies must keep attention over challenges and for the moment of adopting technology and practices instead of observation of competition amongst competitor companies. To create automobile business successful in India, companies are essential to adopting better cost accounting techniques to minimize costs. Target Costing has been identified as a popular technique to accomplish company’s goals. Target costing consist exclusive approach to decide target price for the product and services. Target Costing ensure that new product price would be competitive in the market with substantial quality of products. This research investigates the application procedure of Target Costing (TC) in Automobile companies in India. This study employed Target Costing as a dependent variable and Profitability; Growth; Net Tangibility Assets (NTA); EPS and Firm Size as independent variables. The study adopted convenience sample of top ten automobile companies listed on BSE of India and panel data has covered from 2014-15 to 2018-19 financial years. The results determine the target costing impact on profitability had reported by Pearson’s correlation result shown a negative relationship. Target costing impact on Return on sales examined by simple regression analysis and revealed that there is positive correlation. Finally, Target costing impact on financial performance examined by multiple regression results revealed that there is positive correlation with Revenue from Operation; Profitability; Return on Sales (ROS) and Growth, while negative correlation revealed by Margin from Operation; ROA; Net Tangibility Assets(NTA); EPS and Firm Size.

scholarly journals Target costing

2021 ◽  
Vol 9 (11) ◽  
pp. 491-510
Author(s):  
Sanailton De Lima Dias ◽  
Francisco Tavares Filho ◽  
André Luis Korzenowski ◽  
Moisés Ozório de Souza Neto ◽  
Rafael Ramon Fonsêca Rodrigues
Keyword(s):  
Qualitative Research ◽  
Control System ◽  
Cost Control ◽  
Planning System ◽  
Target Costing ◽  
Construction Companies ◽  
Target Cost ◽  
Efficient Control ◽  
Survey Results

The implementation of a cost control system in construction companies contributes to reducing resource losses in the production process and increasing business productivity and profitability, especially when it comes to small business, which normally do not have a planning system and efficient control. Therefore, this article aims to propose a target costing model for a small construction business, concerning the efficient evaluation of its costs for the maximization of profits in proposals to provide services to public entities. A case study is used, in which data collection occurred through a questionnaire, observations of the process of preparing financial proposals, other unstructured questions, and documentary search, whose approach includes descriptive and qualitative research. The survey results revealed that the enterprise has a cost control system, but is technologically backward. Besides, the enterprise already intuitively used the concepts of target cost in preparing budgets. After evaluating the costs, a target costing model was suggested for the enterprise to use as a parameter in the bidding processes, however, it was not implemented due to the current unfavorable conditions.

scholarly journals Potential possibilities of 3D printing for producing composite materials based on natural bioand synthetic polymers (a review)

2021 ◽  
Vol 25 ◽  
pp. 111-118
Author(s):  
D.G. Cheremisin ◽  
◽  
V.R. Mkrtchan ◽  
A.N. Ivankin ◽  
A.V. Ustyugov ◽  
...  
Keyword(s):  
Composite Materials ◽  
3D Printing ◽  
Raw Materials ◽  
Physical And Mechanical Properties ◽  
Synthetic Polymers ◽  
Production Costs ◽  
Specific Product ◽  
Wood Processing ◽  
Materials Used ◽  
Natural And Synthetic

A review is presented on the modern method of 3D printing of various composites based on synthetic and natural biopolymers with the inclusion of wood raw materials. Some features of scientific and technological approaches to the formation of a specific product using abstract computer modeling are described. A classification and review of the most common and promising 3D printing technologies using degraded raw materials with the inclusion of wood processing products is given. It is shown that using 3D printing, it is very promising to obtain «artificial wood», which is a mixture of a wood base with an inert polymer binder, which can be either based on synthetic polymers or based on natural biomatrix obtained from ecologically safe constituents of herbal raw materials. It is indicated that an important aspect of the problem of obtaining modern biocomposites is the dispersion of the materials used, which affects the entire complex of physical and mechanical properties of the product. The areas of application of the materials used are given. Trends in the development of 3D printing technology with the use of polymer binders based on natural and synthetic polymers are analyzed and the prospects of using natural biopolymers based on plant raw materials for the production of goods and materials necessary for humans as environmentally friendly products are shown. It is concluded that an impending explosive growth in the production and use of 3D composite materials based on natural and synthetic polymers with the inclusion of cheap wood components in the context of a significant reduction in production costs and the rapid production of the required products with low cost of products in the implementation of a highly efficient method 3D printing.

Determining Vehicle-Level Specifications for a New Car Program Considering Market Environments and Engineering Design Constraints

2013 ◽  
Author(s):  
Kilmo Kang ◽  
Changmook Kang ◽  
Yoo S. Hong
Keyword(s):  
Market Environment ◽  
Design Constraints ◽  
Customer Preference ◽  
Engineering Characteristics ◽  
Customer Preferences ◽  
Automobile Design ◽  
Proposed Model ◽  
Important Challenge ◽  
Balanced Model ◽  
The U.S

Designing a marketable automobile for target markets is an important challenge in the globalized market environment. What makes the vehicle planning even more challenging includes various factors such as engineering feasibility, change of market environment, enforced regulations, and ongoing advancement of technology. In this circumstance, the complexity of automobile design arises from the fact that both the target market’s customer preferences and engineering characteristics should be taken into account in balanced as well as quantitative manners. This paper develops a balanced model for determining vehicle-level specifications for a new car program of an automaker considering both the customer preferences on attributes and the engineering characteristics with design constraints. The proposed model takes into account the interrelation of specifications, advancement of technology, vehicle style concepts, and customer preference changes influenced by the fluctuation of market environments. The major vehicle-level specifications of the next-generation automobile model are determined by maximizing the marketability of an auto with meeting the constructed design constraints. The model was validated with the existing mid-size sedans in the U.S. market.

Integrating Target Costing Into Perception-Based Concept Evaluation of Complex and Large-Scale Systems Using Simultaneously Decomposed QFD

2006 ◽  
Vol 128 (6) ◽  
pp. 1186-1195 ◽  
Author(s):  
Shun Takai ◽  
Kosuke Ishii
Keyword(s):  
Quality Function Deployment ◽  
Design Methodology ◽  
Large Scale ◽  
Target Costing ◽  
Large Scale Systems ◽  
Design Concepts ◽  
Target Cost ◽  
Conceptual Design Phase ◽  
Concept Evaluation ◽  
New System

In the conceptual design phase, engineers may need to perceptually screen and prioritize feasible design concepts by their potential to fulfill both customer and financial requirements. This paper presents a system design methodology that integrates perception-based concept evaluation and target costing of complex and large-scale systems. The methodology decomposes a system into modules and evaluates each module concept with its target requirements and cost. This method proposes the decomposition of quality function deployment matrices simultaneously for both requirements and structure in order to allocate the worth and target cost of the modules in a system. Developed from module concepts that satisfy their target requirements and cost, this new system should better satisfy both customer and financial requirements.

scholarly journals Extent of Implementing Target Costing and Value Engineering Approach to Reducing Costs: A Survey in Jordanian Shareholding Companies for Food Industries

2018 ◽  
Vol 10 (1) ◽  
pp. 390 ◽  
Author(s):  
Suleiman El-Dalahmeh
Keyword(s):  
Response Rate ◽  
Engineering Application ◽  
Value Engineering ◽  
Target Costing ◽  
Food Industries ◽  
Engineering Approach ◽  
Target Cost ◽  
Expected Benefits ◽  
Reducing Costs ◽  
Basic Hypothesis

This Study aims at identifying the extent of implementing Target Costing and Value Engineering approach to reducing costs of Jordanian public shareholding companies for food industries. To achieve the study objectives, the researcher distributed personally a questionnaire to a random sample of (145) accountants in the Hashemite kingdom of Jordan. (100) questionnaires were returned. The response rate was 69%. In addition, the survey sought to verify the five basic hypothesis of the study. In order to analysis the data, the researcher used means, standard deviations and T-test. The results of the survey revealed that availability of the components of application of target cost, as well as companies have awareness, concepts, principles and the importance of applying target costs to managing costs so as to improve profitability, and the companies are using value engineering to achieve a cost to reach the target costs. The results also showed that there were some difficulties to hinder the application of target costs and value engineering in Jordanian shareholding companies for food industries. The most important difficulties were: The lack of sufficient knowledge to manage the company on how to implement the target cost and value engineering. The lack of research and publication related to the benefits target cost and value engineering. Application costs greater than the expected benefits.

scholarly journals Accounting for preference dependency in target costing – a note

2021 ◽  
Author(s):  
Carsten Homburg ◽  
André Hoppe ◽  
Roman Schick ◽  
Amelie Braul
Keyword(s):  
Theory And Practice ◽  
Management Tool ◽  
Target Costing ◽  
Independence Assumption ◽  
Modified Model ◽  
Cost Structures ◽  
Customer Preferences ◽  
Product Features ◽  
Original Target ◽  
The Cost

AbstractTarget costing is a well-established strategic cost management tool in theory and practice. The original target costing model implies independence of customer preferences resulting in additive utility functions for the customer-oriented optimization of cost structures. We argue that this independence of preferences is not given until a minimum variant of a product is reached that provides its inherent functionality. This is reasonable since one cannot assign customer utility to a product that does not function in its most basic way. Our modified model accounts for the dependency of customer preferences and differentiates between the costs necessary to produce a minimum variant and those related to product features beyond this minimum variant. The customer-oriented optimization of the cost structure is then conducted only for those costs that exceed the costs of the minimum variant. This modification justifies the preference independence assumption in target costing and allows for a more reasonable assignment of required adjustments in costs per product component.

scholarly journals TARGET COST SYSTEM IN STEVEDORING: IMPLEMENTATION PROBLEMS

2018 ◽  
pp. 94-106
Author(s):  
Elmira Kamilbekovna Salakhova
Keyword(s):  
Consumer Preferences ◽  
Cost Management ◽  
Operating Time ◽  
Market Price ◽  
Target Costing ◽  
Management Tools ◽  
Target Cost ◽  
The World ◽  
Target Cost Management

N the world practice there has been accumulated the significant positive experience on application of the target cost management system (target-costing) focused on developing the product cost, taking into account the industry average of the profit and market price. Russian companies also need to take advantages of the technology of managing the production cost of demanded goods and services at affordable prices. Target costs make a part of the organization's costs of product manufacturing, which must be adjusted without compromising quality, according to the price requirements and consumer preferences. The use of a targeted approach is possible not only for the cost management of the new, developed product, but also for traditionally produced, existing “old” product, for the purpose of its price actualization to the consumer needs. Russia's integration into the world system of distribution of goods and other material resources puts certain requirements to the state of the sea port economy and the port organizational and technical level, to the quality of stevedoring and other services. According to experts, commercial and transport vessels spend almost half of their operating time in Russian seaports, the efficiency of which depends on the volume and flexibility of cargo transportation. Tariffs and quality of services rendered are of great importance for carriers - consumers of stevedoring services. Application of the target costs system in the RF port economy is a very popular innovative management technology. The data on the Astrakhan sea port operation during 2014-2017 have been analyzed, which revealed the need to use target-costing in stevedore services management. Methodological and organizational approaches to the identification, assessment and optimization of target costs for stevedoring services are aimed at improving the efficiency of the seaport and at expanding the practice of using modern accounting management tools.

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