Kaizen Costing Behavioral Issues


Kaizen costing is a method that many Japanese companies have found effective in reducing costs. From a behavioral point of view, answer these questions:
A. What are the biggest problems in using Kaizen costing?
B. How can managers overcome these problems?


As a manager interested in learning more about target costing, you are contemplating three approaches to obtaining the best information possible. The first is to bring in an outside consultant, the second is to develop your own system inside your organization with little to no outside assistance, and the third is to engage in a benchmarking project with several other firms.
A. Critique each of these approaches, discussing their pros and cons. On what basis will you select your approach to learning about target costing? Explain.

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