Reviewing target costing from Strategic Management Accounting perspective

A starting point to learn target costing is to study Bhimani et al. (2008; chapter 12). Then you study some of CIMA articles as they are easier to read and provide much discussion that is quite literature review in nature, e.g. Jack (2008) and CIMA (2005). As to academic articles on this topic, I found Lockamy III and Smith (2000) and Okano (1996) useful for literature review work. Based on Lockamy III and Smith (2000) and Jack (2008), I produced the following diagram to capture some of the main ideas underlying target costing:

Academic articles are more difficult to read than the working papers from CIMA. Try to make use of the SMA evaluation questions of Ho (2011) to review your readings.


References

1. Bhimani, A., Horngren,C.T., Datar, S.M. and Foster, G. (2008) Management and Cost Accounting, FT Prentice Hall.
2. CIMA (2005) Target costing in the NHS: Reforming the NHS from within, published by CIMA Working Group Discussion Paper, October.
3. Jack, L. (2008) Cost management discussion paper Oct. 2008: from gate to plate: towards collaborative target cost management in agriculture and food, CIMA publication.
4. Lockamy III, A. and Smith, W.I. (2000) "Target costing for supply chain management: criteria and selection", Industrial Management & Data Systems 100/5, pp. 210-218.
5. Okano, H. (1996) "Target cost management, Strategy and Organization in the automotive industry" Draft for 1996 IMVP Sponsors Meeting, Osaka City University, Japan.