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Integrating target costing and the balanced scorecard
Author(s) -
Souissi Mohsen,
Ito Kazunoti
Publication year - 2004
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20057
Subject(s) - balanced scorecard , activity based costing , process management , product (mathematics) , quality (philosophy) , target costing , control (management) , process (computing) , strategy map , business , operations management , computer science , marketing , engineering , mathematics , philosophy , geometry , epistemology , artificial intelligence , operating system
Abstract Target costing (TC) has been used successfully for years by leading Japanese companies, principally to motivate design engineers to look for innovative ways to manage cost while not neglecting other crucial dimensions such as product quality and time‐to‐market. This article explores ways that the balanced scorecard (BSC) may help in the target costing process—specifically, how the balanced scorecard could serve as an interactive control system of intensive review, dialogues, and debates to ensure that a company is heading toward its targets. © 2004 Wiley Periodicals, Inc.