Open AccessIntegrated framework for strategic cost management based on target costing, ABC, and product life-cycle in PDP: Empirical experience
Author(s) -
Maísa Martins Ferreira,
Selma Regina Martins Oliveira
Publication year - 2020
Publication title -
global journal of business, economics and management
Language(s) - English
Resource type - Journals
ISSN - 2301-2579
DOI - 10.18844/gjbem.v10i1.4700
Subject(s) - product cost management , activity based costing , target costing , product lifecycle , product management , process management , new product development , product (mathematics) , process (computing) , life cycle costing , cost accounting , business , computer science , operations management , engineering , marketing , accounting , geometry , mathematics , operating system
This study aims to contribute to the planning process on product management. To do so it presents a integrated framework based on strategic cost management, using the methods target costing, activity-based cost (ABC) based on the product lifecycle. This proposal was structured as it follows: Phase 1: determining Target Cost; Phase 2: determining ABC defrayal to the light of the defrayal based on the product lifecycle. The research was elaborated to the light of specialized literature, from which we extracted the variables to formulate the methodology. After that, to show the feasibility and plausibility of the method we applied a hypothetical case study based on the development process of a product to the light of a course/MBA in Business Management in Institution of Higher Education in Brazil. The results were satisfactory and validated the proposal suggested. The survey findings indicate that the integrated method between ABC, target costing and products lifecycle applied in MBA Business Management is quite satisfactory.
Keywords: Framework, target costing, activity-based cost (ABC), costing based on product life-cycle, product development process (PDP);