Here is the synopsis of our sample research paper on Traditional vs Target Costing. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 3 page paper comparing traditional US cost reduction and Japanese target costing. Both apply in new product development, where cost reduction occurs much differently. The bottom line is that the Japanese approach dispenses with lost time and effort in returning to product design to achieve greater cost advantage. A product being developed under the Japanese approach does not go to production until its costs have been determined and approved, eliminating the need to revisit development issues one or more times at a later date. Bibliography lists 4 sources.
Page Count:
3 pages (~225 words per page)
File: CC6_KSacctJapTarC.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
accounting is to provide information that enables effective business decision-making. There are two broad divisions in accounting: financial and management (Horngren, Sundem and Stratton, 2002). Both apply in
new product development, where cost reduction occurs much differently in the traditional US approach than in Japanese target costing. Traditional US Approach Historically,
the first point of notification that costs needed to be reduced came when inputs increased in price but increasing the final product (or service) price to the end consumer would
be counterproductive to sales or company reputation with its customers. When there is an increase in the cost of feed and transport, then the cost of beef and chicken
increases. Consumers expect price fluctuations in those areas and are more accepting of them than in areas of durable goods such as carpets or cars.
Cost reduction in the US traditionally has been to create a product, work out production details and then strive to reduce costs in areas such as input
materials, labor and general overhead. Japanese Target Costing In the Japanese target costing approach, however, product developers are required to meet cost targets
during the product design phase. "In Japan, the purpose of the management accounting system is to influence the behavior of a manufacturing facilitys employees to achieve corporate goals" (Lgagne
and Discenza, 1993). The system developed as an outgrowth of Japans early attention to the precepts of total quality management (TQM) and its component issues of continuous improvement and
employee involvement (Lgagne and Discenza, 1993). Japanese cars gained the attention of the American car-buying public during the international oil crisis of 1973-74;
...