Final answer:
The statement is True; Toyota, Sony, Olympus, and Komatsu are well-known Japanese companies that utilize target costing to manage production costs and remain competitive.
Step-by-step explanation:
True or False, Toyota, Sony, Olympus, and Komatsu are some of the well-known Japanese companies that use target costing, a process which is also known as "design to cost."
This statement is True. Target costing is a pricing method used by companies to manage costs with the market conditions in mind, aiming to ensure competitiveness by determining the life-cycle cost at which a product must be produced to generate the desired profit margin while selling it at the market price.
Japanese manufacturers, including Toyota, have been pioneers in this approach.
They utilize target costing to ensure that their production processes are efficient enough to meet cost targets that will allow their products to be competitive in terms of price and quality.
For instance, this philosophy is embedded in the Toyota Production System, which emphasizes cost control and efficiency in every aspect of manufacturing.
This approach has helped Japanese companies to successfully compete in the global market, especially in the automotive industry, where the market is highly competitive.