Target costing in Turkish manufacturing enterprises (original) (raw)
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Aspects of Obstacles for Applying Target Costing: A Survey of Manufacturing Firms in Egypt
2014
The present investigation aims to determine the aspects of obstacles for applying Target Costing(TC) system in Egyptian case and the significant differences among effects of these obstacles. The study used the survey method to describe and analyze the obstacles in some Egyptian firms. The population of the study is Egyptian manufacturing firms. Accordingly, the number of received questionnaires was 388 (21 Egyptian manufacturing firms) in 2013. Finally, the study found that there is a significant divergence among obstacles for applying Target Costing (TC) system in Egyptian manufacturing firms (Internal and external).The external dimensions are the most influence of internal dimensions, where the weakness of the competition is the highest effect in the external dimensions case but resistance top management is the highest effect in external dimensions case.
COST MEASUREMENT AND COST MANAGEMENT IN TARGET COSTING
Firms are coping with a competitive scenario characterized by quick changes produced by internationalization, concentration, restructuring, technological innovation processes and financial market crisis. On the one hand market enlargement have increased the number and the segmentation of customers and have raised the number of competitors, on the other hand technological innovation has reduced product life cycle. So firms have to adjust their management models to this scenario, pursuing customer satisfaction and respecting cost constraints. In a context where price is a variable fixed by the market, firms have to switch from the cost measurement logic to the cost management one, adopting target costing methodology. The target costing process is a price driven, customer oriented profit planning and cost management system. It works, in a cross functional way, from the design stage throughout all the product life cycle and it involves the entire value chain. The process implementation ...
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 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...
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.
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...
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 ...
Target Costing Calculation and Economic Gain for Companies
This paper deals about the problematic of target costing implementation into the managerial decisions. These decisions make value analysis principles for increasing in competitiveness by the setting off limits for maximum allowable costs which should not exceeded by company manufacturing. By this approach is possible to improve product quality, service, shortening the research and development period and continual effort to lower costs. Target costing as a modern method of calculation uses the principles of value analysis, by using instruments of functional cost analysis and quantitative-function deployment can provide a functional differentiation of the product. This approach has a high importance for quality assurance in pre-production phase and it's increasing. Application of target costing is growing in praxis still. Target costing calculation introduce system approach to quantify costs of product in the phase of constructive and development activities of production. Comparison target costing calculation and traditional calculation show target gap. Target costing calculation is new modern instrument that it facilitates to manage price of product by the customers' requirements. The price is determined by market and customer's needs. In this phase is possible to fix costs of product. In praxis we often meet with situation where the price of product is very high and customer is not ready to pay so much. Target costing calculation limits cost of production.
Adoption of Target Costing in Diverse Industries: A Qualitative Study
International Journal of Business Strategy and Social Sciences
The motive of this paper is to review the articles and research papers regarding the adoption of target costing in different sectors and examines several findings and gaps in the existing literature. This paper reviews existing literature from some renowned journals, official associations and published researches from various timelines. Review of eighteen-journal paper related to target costing is included in this paper. Implication of target costing is the main point of the papers, which is included. Target costing is a popular concept, which is proved to bring better result if applied in the earlier design stages and if firms have a good coordination among their various departments. The papers mostly tested manufacturing firms and construction firms. The findings of the paper suggest that most of the companies do not consider any particular policy for target costing even though these are from same type of industries. Target costing related papers are hard to find in Bangladesh and...
2011
This article presents a way of organizing the management accounting and cost calculation through the Target Costing method. There are treated the development stages of Target Costing method, and the role of the management accountant in the development and implementation of this method. The causes behind the choice to adapt the principles of Target Costing method to the Romanian General Accounting Plan and the operation of accounts used in highlighting economic and financial operations at the entity leve have been analyzedl. There are treated theoretical and applied the methodological steps taken in the management accounting and cost calculation. The article ends with the conclusions of the authors about the possibility of adapting the principles of Target Costing method to the Romanian General Accounting Plan and the advantages offered by this method.