Guidelines For Target Cost Management Of Micro, Small And Medium-Sized Enterprises (MSMEs) In Thailand

Abstract

The purpose of this research was to examine the guidelines for target cost management. Data was collected from 400 Micro, Small and Medium-sized Enterprises in Thailand by questionnaire mail survey. The key informants were accounting executives. To test the research relationships, structural equation modeling (SEM) as a statistical technique was employed. The results revealed that the guidelines for target cost management. The highest means consisted of customer orientation, design process management, product life cycle cost management, value chain management, target price strategy and teamwork development. The analysis results of the structural equation model were satisfied through the evaluation criteria with the empirical data with the Chi-square probability of 0.134, the relative Chi-square of 1.133, the correlation index of 0.961, and the root index of the mean square of the error estimate of 0.018. To improve and increase the benefits of target cost management, executives need to determine how to implement target cost management in a business. Thus, firms need to create business vision, be aware of competitive forces and manage organizational changes through outstanding restructuring, redesign and re-engineering their practices, operations, functions, and strategies in order to meet target cost management implementation requirements.