Target costing and kaizen costing in japanese automobile companies

  • Monden Y
  • Hamada K
  • 129

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Abstract

Cost management methods used by a company must be useful for the production of new products which meet the customers' demand at lowest cost as welt as an aid to cost reduction of existing products by eliminating wastes. To achieve this, companies need a total cost management system which includes target costing and Kaizen costing. The purpose of this paper is to explain features of the system of total cost management in Japanese automobile companies. This paper thus consists of two pillars (i) "Target costing," the system to support the cost reduction process in the developing and designing phase of a new model; and (ii) "Kaizen costing, the system to support the cost reduction process in the manufacturing phase of existing products. We would also like to emphasize that the management accounting system is functioning very well through target costing and Kaizen costing in Japanese automobile companies. [ABSTRACT FROM AUTHOR] Copyright of Journal of Management Accounting Research is the property of American Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Author-supplied keywords

  • AUTOMOBILE industry
  • CONSUMPTION (Economics)
  • COST control
  • JAPAN
  • MANAGERIAL accounting
  • NEW products
  • TARGET costing

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Authors

  • Yasuhiro Monden

  • Kazuki Hamada

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