The extent of applicability of target costing in the furniture industry : a case study

Abstract

Twenty-first century managers will face inescapable and inevitable pressures from many sources to change their organisations. In fact, today, whole industries are revising their own business methodologies in order to be more competitive in the global market. Government's decision to dismantle levy structures, Malta's re-application for European Union membership, and the mere drive towards quality and diversity in the workplace, are few of the experiences that contemporary Maltese business organisations are facing. This dissertation attempts to identify the extent of applicability of target costing within the local furniture industry. Such a costing system was primarily developed in Japan in the 1960's. This proved to have astounding positive results in areas where change was a critical factor - a delicate and essential element within the local furniture industry. Thus the objective of this dissertation is to attain the local perception of target costing methodology and to examine the areas where the applicability of such methodology could be appropriately furnished therein.