Aspects of Obstacles for Applying Target Costing: A Survey of Manufacturing Firms in Egypt (original) (raw)
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The Extent of Using the Target Costing Technique by Jordanian Industrial Shareholding Companies
European Journal of Business and Management, 2016
The current research aims at examining whether or not the Jordanian Industrial Public Corporations use the target costing technique. For this purpose the researchers distributed around 70 questionnaires, while just 52 questionnaires of them are examined. Each questionnaire encompasses 16 questions, whereas 8 of these questions are addressed to all companies; while the remaining questions are addressed to the companies those are used the target costing system. The results reveal that 35% of companies use the target costing system, whether partly 27% or totally 8% and 65% of companies don’t use this system. The study concludes that the major reasons behind not using the target costing system; are due to the lack of target costing knowledge and the management supporting is not enough in additional to the old habits in calculating value. The study recommends Jordanian companies to use the target costing, as it is deemed as an essential part of the management of total cost. Keywords: Tar...
Target costing in Turkish manufacturing enterprises
Rapid developments in technology, change in customer expectations, shortening product life cycles and especially increasing global competition force the companies to reach the targets of "low cost, short time and high quality" at the same time and the highest level possible. Therefore, companies utilize the modern management accounting techniques in achieving these goals. One of the most important among these methods is "Target Costing".
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2016
This study aimed to identify the role of target costing in products cost reduction, as well as identify the role of target costing in products development in Jordanian shareholding industrial companies. The questionnaire has been prepared for this purpose and distributed to a sample of (60) Jordanian shareholding industrial companies who responded to this study, and (51) questionnaire was subjected to analysis. The results were analyzed data showed a number of results one of the most important, It leads the application of target costing system to reduce costs in the Jordanian industrial companies, as well as the study showed that the application of target costing system leads to the development of products in the Jordanian industrial companies is reflected through the many considerations taken into account. The study recommended that there is a need to activate the necessary elements for further costing reduction, and try to use elements currently available as an initial step for th...
The impact of target costing on the competitiveness and financial security of enterprises
Inżynieria Bezpieczeństwa Obiektów Antropogenicznych
The main goal of companies operating on the market is the desire to achieve success. The feelings and criteria for assessing the company's success are varied. For employees, success means a high level of remuneration, additional non-wage benefits, job security and a good atmosphere at the workplace. Management measures success with financial results, product quality, market share, customer satisfaction, innovation, production efficiency, manufacturing costs, and the company's image.In the literature on the subject, the basic measure of the company's success is achieving a competitive advantage, gaining a relatively large market share, which will ensure financial security allowing for further development.Financial security depends largely on the extent to which management knowledge is known and understood, what are the financial skills and behavior of the management staff, the use of which contributes to the effective management of the company's resources.In the curre...
Asia-Pacific Management Accounting Journal, 2019
The paper aims to examine the level of the adoption of the target costing (TC) system by Saudi manufacturing companies and its relationships with competition intensity, intended strategy and firm size. The paper used a questionnaire survey to measure the adoption of TC and the effect of competition intensity and intended strategy on this adoption. Descriptive statistic and regression analysis were preformed to analyse the data and obtain the results. This study found that Saudi manufacturing companies were interested to adopt the TC system. In addition, it found that the competition intensity positively affects TC adoption. Moreover, the study found that companies that used a differentiation strategy were more inclined to adopt the TC than those that used a cost leadership strategy. Finally, it found that large manufacturing companies tend to adopt TC more than small ones. This is among the pioneer studies to study the TC system in Saudi Arabia, introducing a new area of investigation. Moreover, the study contributes to managerial accounting research in developing economies by providing new insights into the underexplored Saudi Arabia market. The findings of this paper could elucidate the importance of adoption of TC as a technique with a potential to support the economic growth of the country.
This study aimed to identify the role of target costing in products cost reduction, as well as identify the role of target costing in products development in Jordanian shareholding industrial companies. The questionnaire has been prepared for this purpose and distributed to a sample of (60) Jordanian shareholding industrial companies who responded to this study, and (51) questionnaire was subjected to analysis. The results were analyzed data showed a number of results one of the most important, It leads the application of target costing system to reduce costs in the Jordanian industrial companies, as well as the study showed that the application of target costing system leads to the development of products in the Jordanian industrial companies is reflected through the many considerations taken into account. The study recommended that there is a need to activate the necessary elements for further costing reduction, and try to use elements currently available as an initial step for the application. The results of the study showed some lack of strong competition and cooperation between the suppliers and company, also there is lack of sufficient experience and knowledge of the application process of Target Cost was not considered an obstacle facing the application process.
Asia-Pacific Management Accounting Journal, 2019
The paper aims to examine the level of the adoption of the target costing (TC) system by Saudi manufacturing companies and its relationships with competition intensity, intended strategy and firm size. The paper used a questionnaire survey to measure the adoption of TC and the effect of competition intensity and intended strategy on this adoption. Descriptive statistic and regression analysis were preformed to analyse the data and obtain the results. This study found that Saudi manufacturing companies were interested to adopt the TC system. In addition, it found that the competition intensity positively affects TC adoption. Moreover, the study found that companies that used a differentiation strategy were more inclined to adopt the TC than those that used a cost leadership strategy. Finally, it found that large manufacturing companies tend to adopt TC more than small ones. This is among the pioneer studies to study the TC system in Saudi Arabia, introducing a new area of investigati...
Asia-Pacific Management Accounting Journal, 2019
The purpose of this research is to explore and describe the implementation of the Target Costing (TC) system as well as its effect on the dynamic capabilities (DC), success factors (SF) and dysfunctional behaviours (DB) of manufacturing firms in Indonesia. As there had been no prior research conducted on the consequences of the target costing implementation in Indonesia, this study, which had been one of the projects undertaken for improving the validity of variables and costing studies in Asia Pacific countries, was therefore performed by way of surveys along with the descriptive-quantitative and multiple regression analyses for gauging its impact on the company’s internal and competitive environment. It was found that better company performance results (PR) had not only stemmed from a low DB level, but were also influenced by the resulting strong DC from the implemented TC system. Apart from demonstrating the target pricing systems as being a triggering factor of DB, this study al...
Target Costing Application And Its Impact On Financial Performance Of Manufacturing Companies In The North Rift Economic Block, Kenya, 2024
This study aimed at establishing target costing application impact on financial performance of manufacturing Companies in the North rift economic block. Explanatory research design was adopted with stratified random sampling technique utilized in collecting data by use of questionnaire, comprising of closed ended questions on a 5-point Likert scale. Study sample size was 220 (53 auditors and 167 accountants) from 48 manufacturing industries. Internal consistency of the variables and construct validity was tested and checked by use of Cronbach alpha and factor analysis respectively. Regression analysis was applied in testing hypothesis whose result indicated that target costing (β =0.146, P= 0.008) has a statistical significant effect on financial performance of manufacturing companies in the North Rift Economic Block. This study concluded that target costing influences financial performance positively by enhancing competitiveness on cost. Seemingly, it boosts profitability through cost reduction and target price determination in line with desired profit. Likewise, the study recommends application of target costing by manufacturing companies to help them navigate through current economic constraints. Consequently, this process would assist in cost management, realization of target production volume, setting up of target price and finally actualization of target profit.
Target Costing Practices: A Review of Literature
2011
Advanced management accounting techniques have been seen by IFAC’s (1998) evolution framework as a shift towards value creation and providing timely and relevant information needed for decision making. The adoption of advanced management accounting techniques, such as Target Costing (TC), requires organizations to be able to deal with challenges and problems that may occur during the adoption process. In today’s competitive environment, many companies are continuously seeking to produce high quality and functional products based on customers’ expectations gleaned from market research. In meeting these objectives, TC has been widely adopted under the original leadership of Japanese TC since the 1960s. Hence, this paper aims to review the literature investigating the TC practices in non-Japanese contexts. The study focuses on the TC concept and its application in ten countries. The information is based on 35 articles which were written in English, translated, and published in various ...