Refer to: Nissan Motor Company, Ltd: target costing system R Cooper - 1994 - Harvard Business School

1. What is the competitive environment that creates the range of products sold?

2. How does Nissan determine its future product mix?

3. What is the purpose of Nissans target costing system?

4. What approaches could be used other than target costing?

5. What is target costing?

6. What is value engineering?

7. What is the relationship between value engineering and target costing?

8. What role does the consumer play in the target costing system?

9. How does Nissan determine the target margin for a new product?

10. What role does profitability play in the target costings system?

11. What is the allowable cost? Draft target cost? Final target cost?

12. What is the role of suppliers in target costing?

13. What role does the accounting department play?

14. Why is accountings role so limited?

15. What role does the cost system play?

16. Why there is no attempt to reduce the cost of a vehicle after it enters production?

17. What types of products would benefit from target costing? What types of products wouldnt benefit?

18. What barriers exist for introducing target costing into Western firms?