Journal of Supply Chain Management

Purchasing and Supply Management's Participation in the Target Costing Process Members Only Content

This article explores the participation of the purchasing and supply management function in the process of target costing. Target costing is an emerging process whereby organizations calculate the allowable cost (i.e., target cost) for buying/producing the product or service they offer for sale by first determining the acceptable selling price in the marketplace and the organization's required internal margin on the product. Based on case studies of organizations that use target costing, this research is both descriptive and prescriptive in nature.

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