Unpacking and repacking target costing under a contingency approach - A case study of four Swedish companies
(2014) BUSN68 20141Department of Business Administration
- Abstract
- Seminar date: June 2, 2014
Course: Master in Accounting and Management Control
Authors: Cristiano Marcias and Christoffer Odin
Advisors: Per Magnus Andersson and Anders Anell
Five key words: target costing; competitiveness; contingency theory; cardinal rule; mechanisms;
Purpose: to develop a hypothetical target costing best practice framework based on the combination of multiple theoretical models, tools, mechanisms and earlier published research to be used as a tool to investigate how a sample of four Swedish companies designs and implements its target costing process based on specific contingent variables affecting the businesses. The following research questions have been investigated: which mechanisms and tools are used by the... (More) - Seminar date: June 2, 2014
Course: Master in Accounting and Management Control
Authors: Cristiano Marcias and Christoffer Odin
Advisors: Per Magnus Andersson and Anders Anell
Five key words: target costing; competitiveness; contingency theory; cardinal rule; mechanisms;
Purpose: to develop a hypothetical target costing best practice framework based on the combination of multiple theoretical models, tools, mechanisms and earlier published research to be used as a tool to investigate how a sample of four Swedish companies designs and implements its target costing process based on specific contingent variables affecting the businesses. The following research questions have been investigated: which mechanisms and tools are used by the selected sample of Swedish companies in their target costing process? Under which circumstances the Swedish companies in the selected sample are willing or forced to depart from the cardinal rule of target costing? Which contingent variables affect the use of target costing?
Methodology: deductive qualitative content analysis approach applied to a sample of companies, defined as case studies. The sample consists of four large sized Swedish manufacturing organizations, which adopt target costing.
Theoretical perspectives: integrative literature study of three theories of management accounting: competitiveness, target costing and contingency theory.
Empirical foundation: the data was obtained from interviews performed with the sample of companies
Conclusions: the research suggested that numerous tools and mechanisms are used by the sample of companies analyzed. Two main cases of departure from the cardinal rule of target costing have been identified, in relation to the necessity of launching a product within the time window and when collaboration with other external designers are deemed more important due to the fact that future returns coming from marketing and promotional activities prevail over target costing. Finally, contingent variables such as uncertainty, management support, laws and regulations, organizational capabilities, natural factors, marketing and launch timing and fashion trends affect the implementation of target costing. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4467815
- author
- Marcias, Cristiano LU and Odin, Christoffer
- supervisor
- organization
- course
- BUSN68 20141
- year
- 2014
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Target costing, competitiveness, contingency theory, cardinal rule, mechanisms
- language
- English
- id
- 4467815
- date added to LUP
- 2014-06-17 13:41:36
- date last changed
- 2014-06-17 13:41:36
@misc{4467815,
abstract = {{Seminar date: June 2, 2014
Course: Master in Accounting and Management Control
Authors: Cristiano Marcias and Christoffer Odin
Advisors: Per Magnus Andersson and Anders Anell
Five key words: target costing; competitiveness; contingency theory; cardinal rule; mechanisms;
Purpose: to develop a hypothetical target costing best practice framework based on the combination of multiple theoretical models, tools, mechanisms and earlier published research to be used as a tool to investigate how a sample of four Swedish companies designs and implements its target costing process based on specific contingent variables affecting the businesses. The following research questions have been investigated: which mechanisms and tools are used by the selected sample of Swedish companies in their target costing process? Under which circumstances the Swedish companies in the selected sample are willing or forced to depart from the cardinal rule of target costing? Which contingent variables affect the use of target costing?
Methodology: deductive qualitative content analysis approach applied to a sample of companies, defined as case studies. The sample consists of four large sized Swedish manufacturing organizations, which adopt target costing.
Theoretical perspectives: integrative literature study of three theories of management accounting: competitiveness, target costing and contingency theory.
Empirical foundation: the data was obtained from interviews performed with the sample of companies
Conclusions: the research suggested that numerous tools and mechanisms are used by the sample of companies analyzed. Two main cases of departure from the cardinal rule of target costing have been identified, in relation to the necessity of launching a product within the time window and when collaboration with other external designers are deemed more important due to the fact that future returns coming from marketing and promotional activities prevail over target costing. Finally, contingent variables such as uncertainty, management support, laws and regulations, organizational capabilities, natural factors, marketing and launch timing and fashion trends affect the implementation of target costing.}},
author = {{Marcias, Cristiano and Odin, Christoffer}},
language = {{eng}},
note = {{Student Paper}},
title = {{Unpacking and repacking target costing under a contingency approach - A case study of four Swedish companies}},
year = {{2014}},
}