Integrating target costing and the balanced scorecard

Document Type

Article

Publication Date

9-1-2004

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.

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