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The adoption and use of target costing in Dutch listed firms

Author

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  • Dekker, H.

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Smidt, P.

Abstract

This paper reports the results of a survey study among Dutch listed manufacturing companies on the adoption and use of costing practices that resemble the Japanese target costing concepts. Twenty-two of thirty-two responding firms claimed to use costing practices similar to target costing. The distribution of adoption over industries confirmed the expectation that assembling firms show a relatively high adoption of target costing. The adoption of these techniques appears to be related to an intense competitive and unpredictable enviromnent. Similar to target costing studies in Japan and Germany, the main objective for adopting these techniques in the sample is to reduce costs. The product development and design departments appear to be leading in the target cost management process, while the accounting department is only moderately involved. Finally, the most frequently adopted organizational form for target cost management are team structures, in which multiple functions combine knowledge and capabilities in the product development process.

Suggested Citation

  • Dekker, H. & Smidt, P., 2001. "The adoption and use of target costing in Dutch listed firms," Serie Research Memoranda 010a, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:2001-10a
    as

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    References listed on IDEAS

    as
    1. Malmi, Teemu, 1999. "Activity-based costing diffusion across organizations: an exploratory empirical analysis of Finnish firms," Accounting, Organizations and Society, Elsevier, vol. 24(8), pages 649-672, November.
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