Nissan Motor Company Target Costing Case Study

References

1. R. Cooper, When Lean Enterprises Collide: Competing Through Confrontation (Boston: Harvard Business School Press, 1995), p. 7.

2. R. Cooper and R. Slagmulder, Target Costing and Value Engineering (Portland, Oregon: Productivity Press, 1997).

3. Target costs should include any costs that are driven by the number of units sold. For example, if the company accepts responsibility for disposing of a product at the end of its useful life, these costs are included in the target cost. See:

R. Cooper and B. Chew, “Control Tomorrow’s Costs through Today’s Designs,” Harvard Business Review,volume 74, January–February 1996, pp. 88–97.

4. R. Cooper and T. Yoshikawa, “Isuzu Motors, Ltd.: Cost Creation Program” (Boston: Harvard Business School, case study 9-195-054);

R. Cooper, “Komatsu, Ltd. (A): Target Costing System” (Boston: Harvard Business School, case study 9-194-037);

R. Cooper, “Nissan Motor Company, Ltd.” (Boston: Harvard Business School, case study 9-194-040);

R. Cooper, “Olympus Optical Company, Ltd. (A): Cost Management for Short Life-Cycle Products” (Boston: Harvard Business School, case study 9-195-072);

R. Cooper, “Toyota Motor Corporation” (Boston: Harvard Business School, case study 9-197-031);

R. Cooper, “Sony Corporation: The Walkman Line”(Boston: Harvard Business School, case study 9-195-076); and

R. Cooper, “Topcon Corporation: Production Control System” (Boston: Harvard Business School, case study 9-195-082).

5. When firms sell the same product at different prices, for example, in different countries or through different channels, an average selling price is used.

Tags:Innovation Strategy, Marketing Strategy, Product Development, Product Strategy, ProfitabilityReprint #: 4042

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