著者

金子 秀

出版者

埼玉大学経済学会

雑誌

社会科学論集 = SHAKAIKAGAKU-RONSHU (The Social Science Review) (ISSN:05597056)

巻号頁・発行日

vol.146・147合併号, pp.59-73, 2016

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This research examines the relationship between target costing and profit management. Target costing is very closely linked with a company’s long-term profit and product planning. Target costing is a comprehensive strategic profit management system. To accomplish this research, we chose to analyze the case of Fanuc. Target costing is introduced as a technique that aims to manage product costs throughout the design stage. Since a large portion of costs are incurred in the design stage, manufacturers are advised to focus on the design process to lower the costs. When manufacturers need to focus on the profitability of products, ROS(Return on Sales) provides a better measure. The desired profit is determined on the basis of the company’ s desired ROS. ROS includes break-even point ratio. Therefore, we divide total costs into variable costs and fixed costs. In Fanuc,“Weniger Teile”(which means to reduce component parts) is a tool for reducing variable costs. The ratio of variable costs is 50% and the ratio of fixed costs is 15%. Fanuc sets 35% for ROS and 30% as its break-even point ratio. Thus, the second set of ratios should be realized if one to accomplish the first set. Fanuc succeeds in combining target costing with profit management.