Environmental Factors and Target Costing Implementation in Selected Nigerian Manufacturing Firms
Worimegbe Temitope *
Department of Accounting, Faculty of Management Science, Redeemer University, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
The purpose of this study was to examine the effect of environmental factors on the implementation of target costing in selected manufacturing firms in Osun State, Nigeria. This was an explanatory study which is based on survey research design through the use of questionnaire to generate data. The data collected from the questionnaire administered was presented in a tabular form and hypotheses formulated were statistically tested using the simple regression analysis and analysis of variance (ANOVA). The dependent variable in the study is target costing and the independent variables are market competition and cultural factors. Findings from the analysis show that Market competition and cultural factors proxies for environmental factors have significant impact on the implementation of target costing in manufacturing firms. It was therefore recommended that for the benefits of target costing to be sustained firms’ need to pay attention to market competition and cultural factors.
Keywords: Cultural factors, market competition, target costing, environmental