Relationship Between Accounting Technique And Operation...

Overview: As the most important managerial tool, target costing is widely employed by manufactory to manage the product cost in their operations. Contrasted with previous studies mainly conducted in leader companies, this journal analyzes how the target costing implement in small and medium enterprises(SME). While, the company cannot obtain the competitive advantage with only cost consideration. Besides the simple cost reduction technique, target costing also should be identified as the integrated strategic profit operation system which is applied with other management techniques. In order to explore the overall effect, a test using value engineering(VE) and quality function development(QFD) analysis was conducted in the small manufactory company. With the help of these approaches, the company achieve cost reduction with no sacrifice neither on quality or functionality. By this way, this journal demonstrates that the relationship between accounting technique and operation management tools, which bridging a gap in management accounting. As the accounting tool, target costing has to integrated into QFD and VE analysis which known as operational techniques, if it wants to achieve effectiveness. 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